Penwest Pharma (PPCO, Endo Pharma (ENDP) Grant Valeant (VRX) Exclusive License to Market Opana(r) ER in Canada, Australia and New Zealand

June 9, 2009 8:38 AM EDT

Penwest Pharmaceuticals Co. (Nasdaq: PPCO), Endo Pharmaceuticals (Nasdaq: ENDP) and Valeant Pharmaceuticals (NYSE: VRX) today announced that Endo has signed an exclusive license with Valeant allowing it to market OPANA ER in Canada, Australia and New Zealand. OPANA ER, the extended release formulation of oxymorphone, was jointly developed by Penwest and Endo.

This agreement is the first one resulting from the collaborative work Penwest and Endo began late last year to license OPANA ER in territories outside the U.S. Under the terms of the collaboration agreement between Penwest and Endo, the two companies have agreed to share equally in the proceeds received from Valeant for OPANA ER under the terms of the licensing agreement.

The agreement with Valeant also includes rights to OPANA(r), the immediate release formulation of oxymorphone developed by Endo.

The terms of the licensing agreement call for a payment of C$2 million upfront and payments totaling up to C$1 million when certain sales milestones are reached in Canada and A$1.1 million when certain regulatory and sales milestones are met in Australia. In addition, Valeant has agreed to pay royalties ranging from 10% to 20% of net sales of the OPANA products in each of the three countries, subject to royalty reductions upon patent expiry or generic entry.

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