Pain Therapeutics Inc. has closed its strategic alliance with King Pharmaceuticals Inc. In connection with the closing, Pain Therapeutics received a cash payment of $150 million from King Pharmaceuticals.

Pain Therapeutics and King Pharmaceuticals had entered into a strategic alliance to develop Remoxy and other abuse-resistant opioid painkillers in November 2005. The value of this alliance could exceed $400 million, plus royalties. This alliance is now successfully closed following the satisfaction of all closing conditions, including expiration of the waiting period required under the Hart-Scott-Rodino Antitrust Improvements Act, states a company release.

Pain Therapeutics is a biopharmaceutical company that develops novel drugs. The company's two lead drug candidates are in late-stage clinical trials, Remoxy and Oxytrex. Both drugs are in phase III programmes and are aimed at different segments of the multi-billion dollar market to treat severe chronic pain, such as low-back pain or pain due to osteoarthritis.