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King Pharmaceuticals and Acura Pharmaceuticals Enter Agreement to Develop and Commercialize Immediate Release Pain Medicines Utilizing Acura's Aversion(R) (Abuse-Deterrent) Technology
Date:10/31/2007

the License, Development and Commercialization Agreement

The Agreement provides King with an exclusive license in the Territory for ACUROX(TM) Tablets (formerly OxyADF) and another undisclosed opioid product utilizing Acura's Aversion(R) Technology. In addition, the Agreement provides King with an option to license in the Territory all future opioid analgesic products developed utilizing Acura's Aversion(R) Technology.

Under the terms of the Agreement, King will make an upfront cash payment to Acura of $30 million. Depending on the achievement of certain development and regulatory milestones, King could also make additional cash payments to Acura of up to $28 million relating to ACUROX(TM) Tablets and similar amounts with respect to each subsequent Aversion(R) Technology product developed under the Agreement. King will reimburse Acura for all research and development expenses incurred beginning from September 19, 2007 for ACUROX(TM) Tablets and all research and development expenses related to future products after King's exercise of its option to an exclusive license for each future product. King will record net sales of all products and pay Acura a royalty ranging from 5% to 25% based on the level of combined annual net sales for all products subject to the Agreement. King will also make a one-time cash payment to Acura of $50 million in the first year in which the combined annual net sales of all products exceed $750 million.

King and Acura will form a joint steering committee to coordinate development and commercialization strategies. With King's oversight, Acura will conduct all ACUROX(TM) Tablet development activities through approval of a New Drug Application ("NDA") and thereafter King will commercialize ACUROX(TM) in the U.S. With respect to all other products subject to the Agreement, King will be responsible for development and regulatory activities following either acceptance of an Investigational New Drug Application by the U.S. Food a
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SOURCE King Pharmaceuticals, Inc.; Acura Pharmaceuticals, Inc.
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