Collegium to License Rights to Commercialize Nucynta Franchise
- Establishes Collegium as a leader in responsible pain management
- Broadens portfolio of meaningfully differentiated products
- Immediately accretive, accelerates time to profitability
- Leverages Collegium’s existing commercial infrastructure
- Conference call scheduled for
Tuesday, December 5th at 8:30 a.m. ET
“The addition of the Nucynta franchise to our product portfolio is transformational for Collegium,” said
“Nucynta and Nucynta ER broaden Collegium’s portfolio of meaningfully differentiated pain products for people living with acute and chronic pain,” said
- Collegium expects to support the Nucynta franchise with its existing retail and hospital field forces.
- High overlap with Collegium’s Xtampza ER target audience of approximately 10,000 pain specialists; 74% of Nucynta ER and 60% of Nucynta volume.
- The transaction is expected to be immediately accretive and to significantly increase product revenue.
- The transaction is expected to close in
January 2018, following clearance under the Hart-Scott-Rodino Act and other customary closing conditions.
- Collegium will receive an exclusive sublicense to commercialize Nucynta and Nucynta ER in the United States.
- Upon closing, Collegium will pay an upfront license fee of
$10.0 million, as well as a cash payment equal to Depomed’s cost of inventory with greater than twelve months dating at the time of close.
- For the first four years of the Agreement, Collegium will pay a minimum annual license fee of
$135.0 millionpaid quarterly in arrears, plus double-digit royalties on net sales above $233.0 millionper year. After four years, Collegium will pay double-digit royalties on all net sales.
- After twelve months, Collegium may terminate the Agreement with twelve months’ notice and payment of a
$25.0 milliontermination fee.
- The transaction has been approved by Collegium’s and Depomed’s Board of Directors.
Gunderson Dettmer Stough Villeneuve Franklin & Hachigian, LLPand Pepper Hamilton LLPacted as legal advisors to Collegium.
Conference Call Information
Collegium will host a conference call and live webcast on
Collegium is a specialty pharmaceutical company focused on developing a portfolio of products that incorporate its proprietary DETERx® technology platform for the treatment of chronic pain and other diseases. The DETERx technology platform is designed to provide extended-release delivery, unique abuse-deterrent properties, and flexible dose administration options.
About Xtampza ER
Xtampza® ER is Collegium’s first product utilizing the DETERx technology platform. Xtampza ER is an abuse-deterrent, extended-release, oral formulation of oxycodone approved by the
This press release contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. We may, in some cases, use terms such as "predicts," "believes," "potential," "proposed," "continue," "estimates," "anticipates," "expects," "plans," "intends," "may," "could," "might," "should" or other words that convey uncertainty of future events or outcomes to identify these forward-looking statements. Such statements are subject to numerous important factors, risks and uncertainties that may cause actual events or results to differ materially from the company's current expectations. Management's expectations and, therefore, any forward-looking statements in this press release could also be affected by risks and uncertainties relating to a number of other factors, including the following: the possibility that the closing conditions set forth in the Agreement, including those related to antitrust clearance, will not be met and that the parties will be unable to consummate the proposed transactions; our ability to realize the expected benefits of the transaction, including the ability to successfully commercialize the Nucynta franchise if and when the transactions contemplated by the Agreement close; our, and our counterparty’s, ability to fully perform our respective obligations under the Agreement; our ability to obtain and maintain regulatory approval of our products and product candidates, and any related restrictions, limitations, and/or warnings in the label of an approved product; our plans to commercialize our products and product candidates and grow sales of our products; the size and growth potential of the markets for our products and product candidates, and our ability to service those markets; the success of competing products that are or become available; our ability to obtain reimbursement and third-party payor contracts for our products; the costs of commercialization activities, including marketing, sales and distribution; our ability to develop sales and marketing capabilities, whether alone or with potential future collaborators; the rate and degree of market acceptance of our products and product candidates; changing market conditions for our products and product candidates; the outcome of any patent infringement or other litigation that may be brought against us, including litigation with
Source: Collegium Pharmaceutical, Inc.