Transcept, SNBL Sign Global Licensing Deal For Advanced Acute Migraine Treatment

(RTTNews) - Transcept Pharmaceuticals, Inc. (TSPT) and Shin Nippon Biomedical Laboratories, Ltd, or SNBL, announced that the companies have entered into an exclusive worldwide licensing agreement for a novel, rapidly absorbed treatment for acute migraine incorporating dihydroergotamine or DHE as the active drug.

The companies said the agreement grants Transcept the global development and commercialization rights to the product candidate, designated TO-2070, which is expected to offer a new and potentially improved approach to the treatment of acute migraine.

Preclinical data suggest that TO-2070 may offer significant migraine treatment benefits beyond those provided by less convenient and more invasive DHE drug delivery methods, such as injection, liquid nasal sprays or pulmonary inhalation.

Based on terms of the agreement, Transcept has agreed to pay SNBL an upfront technology license fee of $1 million, development milestones totaling $6.5 million through New Drug Application approval and, following the launch of the product, commercialization milestones tied to the achievement of specified annual sales levels totaling up to $35 million.

Additionally, Transcept will pay tiered, low double-digit royalties on annual net sales. The parties anticipate entering into further agreements under which SNBL would supply Transcept with nasal powder delivery devices and would provide Transcept with certain preclinical and clinical services to support TO-2070 development.

TO-2070 is based on a novel nasal powder drug delivery technology created by SNBL that combines a muco-adhesive drug carrier with a proprietary nasal powder drug delivery device.