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Pacira Pharmaceuticals and Aratana Therapeutics enter global licensing agreement

Pacira Pharmaceuticals and Aratana Therapeutics announced a global licensing agreement for the development and commercialization of bupivacaine liposome injectable suspension for animal health indications. Under the agreement, Aratana will develop and seek approval for the use of the product in veterinary surgery to manage postsurgical pain, focusing initially on developing the product for cats, dogs and other companion animals. Under the agreement, Aratana made a one-time payment to Pacira of $1M and will pay additional development and commercial milestones totaling up to $42.5M. In addition, upon approval of the product by the FDA, Aratana will pay Pacira a double-digit royalty on net sales of the product. Should Aratana sublicense the product to a third party, Aratana and Pacira will share the proceeds by a predetermined formula. Pacira will be responsible for all product manufacturing, and Pacira and Aratana will form a joint committee to oversee commercialization and development activities.