SOURCE: Streetwise Reports

Streetwise Reports

May 11, 2017 08:45 ET

The Life Sciences Report Examines DURECT and Sandoz's $293 Million Deal for POSIMIR

SAN FRANCISCO, CA--(Marketwired - May 11, 2017) - DURECT Corp. (NASDAQ: DRRX) and Sandoz AG, a division of Novartis, have signed a development and commercialization agreement for the U.S. for POSIMIR.

Included in this article is: DURECT Corp.

POSIMIR is DURECT Corp.'s "locally acting, non-opioid analgesic intended to provide up to three days of continuous pain relief after surgery." DURECT announced that, under the terms of the agreement, "Sandoz will make an upfront payment to DURECT of $20 million, with the potential for up to an additional $43 million in development and regulatory milestones, up to an additional $230 million in sales based milestones, as well as a tiered double digit royalty on product sales in the United States."

DURECT will remain responsible for conducting the PERSIST Phase 3 trial, comparing POSIMIR to bupivacaine HC1 after laparoscopic gall bladder removal. The company anticipates completing the dosing patients in Q3/17 and expects to have top-line data shortly thereafter. POSIMIR has not been approved for commercialization by the FDA.

The Sandoz deal was lauded by a pair of analysts. Francois Brisebois, a healthcare research analyst with Laidlaw & Company, noted that "we see the deal as relatively heavily front loaded and are encouraged by this large pharma validation. Sandoz's market presence and resources could truly benefit DRRX and help them take market share from PCRX's [Pacira Pharmaceuticals Inc.] comparable Exparel. We believe DRRX's favorable terms might have come as a result of PCRX's strong FY2017 guidance ($290M-$310M) and see this partnership as an interesting non-dilutive funding event."

"As DRRX has made clear in the past that they were in negotiations with a number of potential partners, we see Sandoz's impressive expertise and strong hospital presence as a real positive for DRRX," summed up Brisebois.

Continue reading this article: DURECT and Sandoz Ink $293 Million Deal for POSIMIR

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