EpiCept holds key strategic partnerships with leading members of the pharmaceutical industry which both support and validate the Company’s development efforts. Future milestone payments associated with these agreements have the potential to reach over $150 million as well as substantial royalty payments.
EpiCept has entered into an exclusive commercialization agreement for Ceplene® (histamine dihydrochloride) with Meda AB, (OMX Nordic Exchange: MEDA-A-ST) a leading international specialty pharmaceutical company with products sold in 120 countries worldwide. The company has its own sales organizations in the U.S. and more than 40 other countries, including a marketing organization of about 1,200 people throughout Europe. Meda’s annual sales is currently approximately $1.8 billion with several products in the cancer area, including Onsolis®, indicated for breakthrough pain in cancer patients. Under the terms of the agreement, EpiCept granted Meda the right to market Ceplene in Europe and several other countries including Japan, China, and Australia. EpiCept received $5 million in upfront and milestone payments. Additional payments include $5 million payment upon achievement of a regulatory milestone and up to $30 million in sales-based milestones that commence upon attainment of at least $50 million in annual sales. EpiCept will receive a double digit percent royalty on net sales in the covered territories and will be responsible for Ceplene’s commercial supply.
EpiCept has granted Endo the exclusive worldwide right to commercialize LidoPAIN® BP. The Company also granted Endo worldwide rights to use certain aspects of its patents for the development of certain other non-sterile, topical lidocaine patches, including Lidoderm®, Endo's non-sterile topical lidocaine-containing patch for the treatment of chronic lower back pain. The Company is eligible to receive up to $90 million in milestones from the development of LidoPAIN BP and Lidoderm for back pain as well as a double digit royalty on the sale of LidoPAIN BP.
EpiCept granted DURECT Corporation the exclusive, worldwide rights to certain of EpiCept’s intellectual property for a transdermal patch containing bupivacaine for the treatment of back pain. This agreement aligns with EpiCept’s strategy to broaden the application of its patent estate in managing back pain beyond the use of lidocaine. Under the terms of the agreement, EpiCept received a $1 million upfront payment in December 2006. In September 2008, EpiCept and DURECT signed an amendment to the December 2006 agreement in which EpiCept granted DURECT royalty-free, fully paid up, perpetual and irrevocable rights to the intellectual property licensed as part of the original agreement in exchange for a cash payment of $2.25 million from DURECT.
EpiCept is a licensor to Myrexis, Inc. (Formerly Myriad Pharmaceuticals, Inc.) for the exclusive worldwide right to develop and commercialize the MX90745 series of apoptosis inducers. Under the terms of the agreement, Myriad is responsible for all clinical development and commercialization of compounds from this series. Myriad has initiated clinical trials for Azixa™* (MPC-6827), for the treatment of brain cancer and other solid tumors. The agreement requires that Myriad make licensing, research and milestone payments to EpiCept, assuming the successful commercialization of a compound for the treatment of cancer, as well as pay a royalty on product sales. The Company is eligible to receive up to $27 million in milestone payments from Myriad for the development of Azixa.
*Azixa™ is a trademark of Myriad Genetics, Inc.