Endo, Penwest, license Opana ER rights to Valeant

Endo Pharmaceuticals Inc. and Penwest Pharmaceuticals Co. said Tuesday they gave Valeant Pharmaceuticals International exclusive rights to sell the pain treatment Opana ER in Canada, Australia and New Zealand.

Under the deal, Valeant will pay Endo 2 million Canadian dollars ($1.8 million) upfront and payments up to 1 million Canadian dollars ($892,985), when certain milestones are reached. The deal also includes 1.1 million Australian dollars ($869,957), based on milestones.

Valeant also agreed to pay royalties ranging from 10 percent to 20 percent of net sales of the Opana products in each of the three countries, subject to royalty reductions upon patent expiry or generic entry.

Opana ER gained U.S. approval in June 2006 and is currently marketed by Endo.