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POZEN Inc. Message Board

  • hofno2003 hofno2003 Aug 20, 2014 10:44 AM Flag

    POZN actively seeking licencing partner for Treximet in EU/ROW, Deal Value could be $250+ million

    From Pernix PR concerning aquiring Treximet rights from GSK today:
    Transaction Details
    • Pernix has made an upfront payment to GSK of $250 million for the U.S rights to Treximet®
    • Pursuant to the recently issued FDA Written Request related to pediatric exclusivity, Pernix will pay GSK additional consideration of up to $17 million, subject to certain adjustments related to the resolution of the recent supply constraint. Pernix anticipates making this payment in September 2014, following resumption of supply from GSK.

    From POZNs website concerning treximet (MT 400) licencing deals:

    MT 400 is POZEN’s proprietary combination of sumatriptan and naproxen sodium, the first multiple mechanism triptan therapy for the treatment of migraine headaches. MT 400 has proven to be superior to triptan monotherapy on multiple efficacy endpoints. In March 2011, POZEN announced a license agreement with Cilag GmbH International, a division of Johnson & Johnson, for the development and commercialization of MT 400 in Brazil, Colombia, Ecuador and Peru. POZEN is actively seeking other licensing partners for the additional available territories

    So its reasonable to conclude that the deal of today has a substantial potential for upfront payments for POZN for Treximet in EU and ROW.

    Long position in LPCN, RXII, POZN;

    Sentiment: Strong Buy

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    • Treximet helped POZN be able to fund the PA trials and submission, without needing partner assistance or share dilution.

      And now Treximet may yet pay more dividends. It is also likely that this new partner will more aggressively market US Treximet. While that won't benefit POZN immediately, it is sometimes forgotten that POZN will once again receive royalties from US Treximet sales, beginning in 2018 (3 1/2 yrs out) at the tune of 20%. Lots could change then, generics could enter the picture....but it is with watching as a dark horse contender for significant future revenues.

      • 1 Reply to play_tow
      • Actually the royalty POZN will get on US sales beginning in 2018 is 20% of the 18% that's paid to the Canadian pension fund to which they sold off the rights a few years ago, i.e., 3.6%. This was clarified in the POZN cc that was held the morning the deal for assignment of US rights to Treximet to PTX was announced a few months ago. Still, 3.6% of $100 million or more in US sales isn't trivial. But the big win for POZN in this deal is its ability to fully exploit Treximet ex-US, where POZN always retained the rights.

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