Schering-Plough awards Santarus milestone payment

Speciality pharmaceutical firm Santarus has announced that it has received a $5 million (2.5 million pound) milestone payment from Schering-Plough as a result of clinical product development at the firm of proton pump inhibitor products using patented technology licensed from Santarus.

According to the terms of the over-the-counter licence agreement, Schering-Plough is responsible for the development, production and marketing of products for the treatment of heartburn using this technology with reduced dosage strength of 20 mg of omeprazole.

Production, promotion and commercialisation of Zegerid (omeprazole/sodium bicarbonate) – a prescription product in 20 mg and 40 mg strengths – will continue to be conducted by Santarus.

“In addition to the $15 million upfront license fee received in November 2006 and this $5 million milestone, the company may receive up to an additional $60 million in milestone payments upon the achievement of certain regulatory and sales milestones,” Santarus reports.

The firm adds that it is also entitled to a double-digit royalty on sales of over-the-counter products sold under the agreement, while it will have the obligation of paying royalties itself to the University of Missouri.

Schering-Plough announced its in-license deal with Santarus in October 2006, with the company stating that this agreement will provide a healthcare benefit to consumers.