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news.Adolor is set to re-acquire all rights of the US Food and Drug Administration approved gastrointestinal-recovery treatment ENTEREG (alvimopan) from GlaxoSmithKline (GSK) for $25m.
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ENTEREG is indicated to accelerate the time to upper and lower gastrointestinal recovery following partial large or small bowel resection surgery with primary anastomosis.
Currently, the drug is co-promoted by Adolor and GSK in the US.
Under an agreement signed between the companies, Adolor will pay $2.5m in 2011, tiered, mid-single digit royalties on annual net sales and a further one-time, sales-related milestone of $15m.
The company will pay the total amount over a six-year period.
Adolor president and CEO Michael Dougherty said they expect ENTEREG to generate meaningful cash flows for the company over the next year and into the future.
"With full ownership of a key hospital product in ENTEREG and data just ahead from our Phase 2 program with ADL5945 for the treatment of opioid-induced constipation, we believe Adolor is well positioned to create compelling strategic value for our stockholders," Dougherty said.
The transaction is expected to close in September 2011.