Acura Pharmaceuticals, Inc. said it has received an initial $30 million non-refundable cash payment from King Pharmaceuticals, Inc for closing of a license, development and commercialisation agreement.

The agreement closing with King Pharmaceuticals Research and Development, Inc, a subsidiary of King Pharmaceuticals was subject to clearance under the Hart-Scott-Rodino Antitrust Improvements Act which was received December 6, 2007. Upon the closing of the agreement, the company paid off its $5 million secured term note in accordance with the agreement and the prepayment provisions of the secured term note. The company now has no term debt on its balance sheet.
The Agreement provides King with an exclusive license in the United States, Canada, and Mexico for Acurox Tablets plus another undisclosed opioid product candidate utilizing Acura's Aversion Technology. In addition, the agreement provides King with an option to license in the Territory all future opioid analgesic products developed utilizing Acura's Aversion Technology.

In addition to the $30 million initial payment announced, Acura could also receive additional cash payments from King of up to $28 million for Acurox Tablets and similar amounts with respect to each future product licensed based on successful achievement of certain development and regulatory milestones specified in the agreement. King will reimburse Acura for all Acurox Tablet research and development expenses incurred beginning from September 19, 2007 and all research and development expenses related to future products after King's exercise of its option to an exclusive license for each future product.

King will record net sales of all products and pay Acura a royalty ranging from 5 per cent to 25 per cent based on the level of combined annual net sales for all products subject to the Agreement. King will also make a one-time cash payment to Acura of $50 million in the first year in which the combined annual net sales of all licensed products exceed $750 million.

Acura Pharmaceuticals, Inc. is a specialty pharmaceutical company engaged in research, development and manufacture of innovative Aversion (abuse deterrent) Technology and related product candidates.