GlaxoSmithKline sells US rights to migraine therapy Treximet to Pernix Therapeutics

GlaxoSmithKline reached an agreement to sell exclusive US rights to the migraine treatment Treximet (sumatriptan/naproxen) to Pernix Therapeutics for an upfront payment of $250 million and other considerations, the latter announced Wednesday. Under the deal, GlaxoSmithKline will continue to manufacture the drug under a long-term supply agreement, while Pernix will purchase GlaxoSmithKline's current inventory of the therapy. The transaction is expected to close by August 1.

Additionally, Pernix said it will also assume GlaxoSmithKline's royalty agreement with Pozen, which co-developed Treximet. Under the amended deal, Pernix will pay Pozen an 18-percent royalty of net product sales, with a minimum quarterly royalty amount of $4 million due for the period of January 1, 2015 to March 31, 2018. Meanwhile, Pernix will also continue certain of GlaxoSmithKline's ongoing development activities and undertake new initiatives, with "reasonable assistance" provided by Pozen.

Treximet was cleared by the FDA for the treatment of acute migraines with or without aura in 2008 and generated sales of $78.7 million last year. Pernix indicated that it will pursue an extension of the therapy's market exclusivity by seeking approval for a paediatric indication, with a regulatory filing anticipated by the end of the year. GlaxoSmithKline will be due a royalty payment of $17 million if the FDA approves the paediatric indication.

Shares of Pernix rose as much as 42.5 percent on the news.

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