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TICKERS: DRRX

Technology License Triggers $10 Million Milestone Payment for Biopharma
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Source:

This is the first of many such potential payments under the related agreement.

DURECT Corp. (DRRX:NASDAQ) announced in a news release that it earned a $10 million milestone payment from Gilead Sciences Inc. (GILD:NASDAQ) for Gilead having advanced a long-acting injectable HIV investigational product using DURECT's SABER technology.

SABER, or sucrose acetate isobutyrate extended release, is a patented technology which provides sustained release for long-acting injectable products.

"Our license agreement with Gilead is part of DURECT's broader strategy to enter into selective collaborations and other arrangements for our technologies and product development programs," DURECT President and CEO James E. Brown said in the release. "By leveraging our resources with corporate collaborators, we believe we can retain commercial interest in multiple product candidates and maximize value for our shareholders."

Remaining milestones under this DURECT-Gilead agreement include the potential for up to another $65 million in development and regulatory milestones plus up to $70 million in sales-based milestones along with tiered royalties on product sales.

According to the release, "Gilead also received exclusive access to the SABER platform for HIV and hepatitis B virus (HBV) and the exclusive option to license additional SABER-based products directed to HIV and HBV for an additional $150 million per product in upfront, development, regulatory and sales based milestones as well as tiered royalties on sales. The parties will collaborate on specified development activities with Gilead controlling and funding the development programs."

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1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
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