KemPharm enters into licensing agreement with KVK Tech for Apadaz
KemPharm announced its entry into a definitive collaboration and license agreement with KVK Tech for the U.S. commercial rights of its FDA-approved prodrug product, Apadaz Under the terms of the agreement, KemPharm is eligible to receive up to an estimated $3.4M in pre-launch payments and certain cost reimbursements, including a $2.0M payment upon achievement of a specified milestone related to the initial formulary adoption of Apadaz, as well as an aggregate of up to $53M in milestone payments tied to specific net sales levels. In addition, net profits will be shared between KemPharm and KVK up to 50% based on achieving specified net sales levels. KVK has the exclusive right for all commercial, manufacturing, packaging and distribution activities for Apadaz in the U.S. and will be responsible for all regulatory and commercialization-related expenses. In addition, certain pre-launch expenses, including the costs of API and other materials for manufacturing, validation batches, inventory investments and other launch-specific costs will be shifted from KemPharm to KVK. Pre-launch activities that KemPharm and KVK will continue to collaborate on include outreach and plan adoption by pharmacy benefit managers and managed care organizations for the exclusive utilization of Apadaz as an alternative to currently available hydrocodone/acetaminophen products.