Vernalis Plc terminated a collaboration agreement with Tris Pharma Inc. as it closes its U.S. commercial operations.

The U.K.-based company previously agreed to develop and commercialize prescription cough and cold medicines with Tris Pharma.

Vernalis will pay $10 million in connection with the termination and is now free from all future payment obligations stated in the deal.

Furthermore, Vernalis has transferred the rights, along with the new drug application, for Tuzistra, which is intended to treat cough and respiratory symptoms associated with allergies or the common cold.

The company will still receive royalties on the drug's sales for a 10-year period, as well as on the unapproved drugs CCP-07 and CCP-08.

In relation to its strategic review, Vernalis said it has received several acquisition offers and has engaged Evercore as a financial adviser for the potential sale of the company.