BioDelivery Services has agreed to pay $7 million to LQT USA for all U.S. rights to an oral drug delivery technology called BEMA.

The delivery method is a crucial component in BDSI’s proposed treatment for breakthrough cancer pain. BDSI (Nasdaq: ) is using BEMA to deliver the pain killing drug fentanyl through the lining of the mouth.

BEMA stands for bioerodible mucoadhesive. It is a patented disc that delivers drugs through the inner cheek when the disc is placed between the cheek and gum.

Last week, BDSI signed an agreement with European firm Meda AB for commercialization rights to BEMA Fentanyl. The deal includes a $30 million upfront payment from Meda.

QLT USA is an international pharmaceutical firm. Its U.S. headquarters is located in Colorado. BDSI purchased European rights to BEMA a year ago for $3 million.

BDSI had an option to purchase full rights to BEMA. The purchase means QLT USA will not receive royalties from the sale of BEMA Fentanyl.

BDSI will pay QLT USA $3 million initially and two $2 million installments based on achievements in licensing BEMA Fentanyl. The deal is expected to close in October.

”We are pleased to have been able to take full ownership of this technology which plays such a significant strategic role to our company,” said Mark Sirgo, BDSI’s chief executive officer, in a statement.

”We are following through on our strategic plan, initiated last year, when we acquired the non-U.S. BEMA assets.,” he added “This acquisition was integral to consummating our licensing agreement with Meda last week. By doing so, QLT is eliminated from receiving any future milestone or royalty payments on BEMA Fentanyl or any BEMA product. This brings a tremendous benefit to our stockholders.”