The new product, to be announced prior to launch, will use Arecor’s Arestat drug formulation technology and is expected to be submitted to the US Food and Drug Administration for regulatory approval in 2021.
Under the agreement, Arecor will receive an upfront payment as well as further compensation based on the achievement of development, regulatory and commercial milestones.
Hikma, meanwhile, will be responsible for the manufacturing and commercialisation of the product, although Arecor will retain the right to develop and commercialise the medicine outside of the US.
Sarah Howell, Arecor’s chief executive, said that Hikma had a “strong and respected US hospital market presence” and the firm was looking forward to the joint development of the product as part of “a broad collaboration” with the blue-chip firm.
Meanwhile, Riad Mishlawi, president of Hikma Injectables, said the company was “confident that Arecor's state-of-the-art development platform, combined with Hikma's strong manufacturing capabilities and excellent commercial team, with its broad relationships across US hospital systems, will bring an important new treatment option to patients and healthcare providers".
Shares in Hikma were 0.7% higher at 1,887.5p in early deals on Thursday.