Abbott has signed an agreement to acquire all global rights to develop and commercialize AP214 from Action Pharma.
AP214 is a hormone analogue which is being developed to prevent acute kidney injury associated with major cardiac surgery in patients at increased risk.
As per the agreement, Action Pharma will receive $110m from Abbott, which will even fund future development and commercialization activities related to AP214.
Abbott pharmaceuticals research and development senior vice president John Leonard said, "Clinical experience with AP214 in cardiac surgery patients suggests that it has the potential to be the first compound specifically approved to prevent acute kidney injury, a long-standing unmet need in the medical community."
Under the agreement, no later milestone payments or royalties will be paid to Action and Abbott expects to earn a one-time specified item in the second quarter of 2012, related to this payment.
Action Pharma in-licensed Zealand Pharma's (ZEAL) SIP technology for use with pro-opiomelanocortin derivatives, in 2003.
As a part of the agreement between Abbott and Action, Action's original agreement with Zealand regarding the technology is cancelled, and superseded with a new agreement between Abbott and Zealand regarding the SIP technology.
Action will pay $11m to Zealand, upon the closing of the Abbott and Action transaction.
Zealand is also eligible to receive a low single-digit royalty on Abbott's future global sales of AP214.
