Pharmacopeia and Cephalon, Inc. have formed a partnership to discover, develop and commercialize new drugs. Under the terms of agreement, the "division of labor" between the two firms are clear:
1. Cephalon will be responsible for identifying promising compounds.
2. Both companies will then work to develop the compounds into clinical candidates, with Pharmacopeia responsible for medicinal chemistry and primary biology, while Cephalons provide biology support as needed.
3. Pharmacopeia retains an option to develop candidates from the collaboration, and Cephalon will primarily be resposible for their development and commercialization. Regarding royalties for commercialized products, the terms were:
For each clinical candidate advanced under the collaboration, the developing company will make clinical, regulatory and sales milestone payments to the non-developing company. Further, the company commercializing each resulting product will pay the non-commercializing company up to double digit royalties based on the sales level achieved.
Cephalon paid Pharmacopeia an up-front fee of $15 million for this partnership.
Source: Pharmacopeia press release.
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