) entered into a letter agreement with
) in connection with its license agreement for Oxecta.
Oxecta is the first approved and marketed product utilizing
Acura's proprietary Aversion technology. Acura licensed its
Aversion technology to Pfizer for use in Oxecta in the U.S. and
As per the agreement, Acura terminated its license,
development and commercialization agreement which dates back to
Oct 30, 2007. The agreement was entered with King Pharmaceuticals
Research & Development which is now a subsidiary of
Acura has now regained all rights to the products licensed to
Pfizer under the license agreement.
We remind investors that Acura had entered into another letter
agreement with Pfizer in Sep 2012, whereby the latter returned to
the former all the products licensed to it under the original
license agreement except for Oxecta.
Under the terms of the new letter agreement, Acura's license
grant to Pfizer for the Aversion technology has also been
terminated and Acura now owns all rights to Oxecta tablets.
We note that Pfizer received the U.S. Food and Drug
Administration (FDA) approval in Jun 2011 for its New Drug
Application (NDA) for Oxecta.
Acura will make a one-time payment of $2.0 million to Pfizer
in consideration of the termination of the license agreement.
On the other hand, Pfizer will transfer Acura all studies,
data, regulatory filings (including the NDA) and other
information relating to Oxecta.
We note that Acura's pipeline is being developed using its
proprietary Aversion and Impede technologies. Acura's another
franchise, Nexafed was launched in Dec 2012. Nexafed uses the
Impede technology that disrupts the conversion of pseudoephedrine
into the dangerous methamphetamine.
However, Acura is heavily dependent on the successful
commercialization of Oxecta for driving revenue growth. We
believe that Acura might forge a partnership deal with any other
pharmaceutical company for the successful commercialization of
Oxecta. Hence, we expect investor focus to remain on updates on
Acura currently carries a Zacks Rank #3 (Hold). Right now,
companies that look well-positioned include
). Both carry a Zacks Rank #2 (Buy).
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