Intellipharmaceutics International (TSE:I) (NASDAQ:IPCI) said Thursday it has expanded its existing commercial agreement with Par Pharmaceuticals (NYSE:PRX) to include additional strengths of generic Focalin targeted to the US market.
The drug, which is used to treat attention deficit hyperactivity disorder, had sales of roughly US$536 million for the 12 months ending June 2011, according to Wolters Kluwer Health.
Under the expanded deal, Intellipharmaceutics will receive an immediate cash payment from Par and continue to receive a share of profits from future sales.
The initial agreement, which applied to the development and commercialization of the 5, 10, 15 and 20 milligram doses, stipulated that Par would pay for development costs and pay Intellpharmaceutics milestone payments, as well as incentive and success-based payments.
No financial terms were disclosed in Thursday’s statement.
Currently, five strengths, including 5, 10, 15, 20 and 30mg, of a generic version of Focalin are the subject of Intellipharmaceutics' pending Abbreviated New Drug Application (ANDA) with the FDA.
In March, Intellipharmaceutics and Par settled a patent lawsuit, which involved Novartis (NYSE: NVS), Celgene Corp. (NASDAQ: CELG) and Elan Pharma International (NYSE: ELN), regarding generic Focalin for dosages of five, 10, 15 and 20-milligrams. The terms are confidential, the companies said.
Currently, both companies are defendants in an on-going U.S. litigation against the same plaintiffs regarding its 30-milligram product.
Toronto-based Intellipharmaceutics makes generic controlled-released and targeted release oral solid dosage drugs.
The company has a pipeline of products in various stages of development in therapeutic areas which include neurology, cardiovascular, gastrointestinal tract, pain and infection.