Egalet, Shionogi partner to develop abuse-deterrent opioids
Egalet Ltd. (Vaerlose, Denmark) partnered with Shionogi & Co. Ltd. (Tokyo:4507) to develop and commercialize oral abuse-deterrent hydrocodone opioid products using Egalet's drug delivery technology. Egalet will receive $10 million up front, and Shionogi will purchase up to about $15 million in Egalet shares in a private placement concurrent with Egalet's IPO. Last month, the company filed to raise up to $69 million in an IPO.
Shionogi will also fund all development costs and will have exclusive, worldwide rights to commercialize resulting products. Egalet is eligible to receive over $400 million in milestones, plus tiered royalties in the mid-single-digit to low-double digits. Stifel advised Egalet; the bank is also an underwriter on the company's IPO. ...