|Zogenix's Sumavel DosePro--Courtesy of Zogenix|
Zogenix is selling its Sumavel DosePro Needle-free Delivery System for migraines to Endo International, but don't be fooled--it is maintaining ownership of the delivery technology upon which the product is based.
"This is a key component of the agreement structure as we believe there continues to be significant potential for future of development of DosePro technology both for our own new product pipeline in pain and CNS disorders, along with broader applications for potential partners that could license the technology for their own products," said Zogenix CEO Roger Hawley during a conference call.
Zogenix will also be responsible for Sumavel's manufacturing and supply chain, under the terms of the agreement, Hawley said.
Zogenix describes DosePro as "the only commercially available prefilled disposable needle-free drug delivery system for subcutaneous injection," on its website. DosePro has more than 60 worldwide patents that last through 2026, the company says.
The DosePro comarketing agreement with Battelle also remains intact, Hawley said. The companies are jointly seeking to out-license the drug to biopharmaceutical companies for the delivery of their biologic therapies. In addition, Battelle is Zogenix's preferred provider of development services for the DosePro technology.
Upon closing of the transaction in 2Q 2014, Endo will receive worldwide rights to the Sumavel DosePro product. It is paying Zogenix $85 million for the rights and up to $20 million in additional milestone payments.
Hawley said the sale will help his company focus on the launch of painkiller Zohydro ER. Many feel Zohydro will fuel prescription drug addiction because it is the first extended-release oral formulation of hydrocodone without acetaminophen. Hawley devoted a large portion of the call to aggressively defending Zohydro and detailed plans to improve its perception, including the formation of "truth squads" to respond to negative media attention.
"The transaction will enable the company to optimize our focus in pain management. This includes ongoing development of two abuse-deterrent formulations of Zohydro ER, which we are committed to as an important next step for all stakeholders," Hawley said.
Watch for Zogenix to make more deals in pain management, although they could well be the buyer next time. "This [transaction] will also allow our business development and R&D teams to better focus and pursue other pain [management] opportunities, both for immediate leverage of our salesforce and to expand our new product pipeline. We are also actively looking at other complimentary pain products," Hawley said.
And according to Chief Financial Officer Ann Rhoades, the transaction will increase Zogenix's cash position above the $100 million mark.
- read the release
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