BioDelivery Sciences has received a $30 million payment from European life science firm Meda AB as part of their partnership to develop a treatment for break-through cancer pain.
The companies announced their partnership on Sept. 5 and have received notice that the Federal Trade Commission will not review the transaction. Beda is paying BDSI (Nasdaq: BDSI) for marketing rights to the pain reliever treatment in the U.S., Canada and Mexico.
Meda, which is based in Sweden, already owned the European rights to the pain treatment.
BDSI acquired an oral drug delivery technology called BEMA in 2004. BEMA involves a dissolvable material that is coated with the opioid narcotic fentanyl.
BDSI hopes to receive Food and Drug Administration approval to begin sale of the pain reliever in 2008.
Based on the payment, BDSI expects to have a net cash flow of $13 million in 2007. The company also plans to explore other drug candidates. BDSI also could receive another $30 million milestone payment next year.