Santarus, Inc., a specialty pharmaceutical company, has received the $5 million milestone payment previously announced on July 20, 2007 relating to progress on clinical product development strategy under its over-the-counter (OTC) license agreement with Schering-Plough HealthCare Products, Inc. for proton pump inhibitor (PPI) products using Santarus' patented PPI technology.
Under the terms of the OTC license agreement, Schering-Plough is responsible for the development, manufacturing and commercialization of OTC products using Santarus' PPI technology with the lower dosage strength of 20 mg of omeprazole for heartburn-related indications in the U.S. and Canada. Santarus will continue to manufacture, promote and sell its Zegerid (omeprazole/sodium bicarbonate) prescription products in both 20 mg and 40 mg dosage strengths of omeprazole in the US prescription market for PPI products.
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 will also be entitled to a low double-digit royalty, subject to adjustment in certain circumstances, on net sales of any OTC products sold by Schering-Plough under the license agreement. In turn, Santarus will be obligated to pay royalties to the University of Missouri on net sales of any such OTC products.
Santarus, Inc. is a specialty pharmaceutical company focused on acquiring, developing and commercializing proprietary products that address the needs of patients treated by gastroenterologists or primary care physicians. The company's current marketing efforts are primarily focused on Zegerid capsules and powder for oral suspension.