Flexion Therapeutics Inc. agreed to acquire global rights to develop and commercialize Xenon Pharmaceuticals Inc.'s experimental postoperative pain management drug XEN402 for an up-front payment of $3 million.
Under the agreement, Xenon is eligible to receive up to $9 million through the initiation of a phase 2 proof-of-concept study. Additionally, Xenon will receive up to $40.8 million in clinical development and regulatory milestone payments and up to $75 million in commercialization milestone payments.
Burnaby, British Columbia-based Xenon is also entitled to receive future sales royalties ranging from mid-single to low double-digit percentages. Moreover, Flexion will assume Xenon's obligation to pay a low single-digit percentage of sales royalty to Teva Pharmaceutical Industries Ltd.
Burlington, Mass.-based Flexion, which develops and commercializes anti-inflammatory and pain management therapies, will use XEN402 to develop an extended-release formulation called FX301.
FX301 is temperature sensitive and transforms from a liquid to a gel, which allows local delivery of XEN402 near target nerves for up to a week while allowing patients to retain motor function. Flexion expects to start clinical trials for FX301 in 2021.
