Chapel Hill drug company Pozen reported that an agreement that called for a division of health giant Johnson & Johnson to develop and commercialize the migraine treatment MT 400 in four South American countries has been terminated.
Pozen disclosed in a regulatory filing last week that the two parties mutually agreed to pull the plug on the agreement.
The agreement with J&J’s Cilag GmbH International dates back to 2011. Under that agreement, Cilag had the rights to market MT 400 in Brazil, Colombia, Ecuador and Peru.
Pozen reported that “there is no dispute” between the two parties.
As a result of the termination, Pozen will receive $257,300 in licensing revenue in its fiscal fourth quarter.
MT 400 was approved by U.S. regulators in 2008 and is sold as Treximet in the United States by Pozen’s partner GlaxoSmithKline. In 2011, Pozen sold the future rights to U.S. royalty payments from Treximet sales for $75 million. Pozen also will receive 20 percent of any U.S. royalty payments after April 1, 2018.
Pozen said the companies also will negotiate a supply agreement that would call for Cilag to supply Pozen with MT 400 for the next two years, or until Pozen establishes an alternative supplier.
Pozen shares closed at $8.02, down 6 cents, on Monday. The company’s shares are flat for the year.
Earlier this month, Pozen shares fell 10 percent after the company announced that its application for approval of its experimental cardiovascular drug Yosprala faces further delay due to issues with a supplier of an active ingredient of the drug cited by regulators.
Pozen believes that the supplier has addressed the manufacturing deficiencies cited by the Food and Drug Administration, but that the FDA hasn’t reinspected the facility since the corrective measures were taken.