King licenses muscle-relaxant Skelaxin to Mutual for more than $35 million, royalties

By E. Janene Geiss

Philadelphia, Dec. 9 - King Pharmaceuticals, Inc. announced Friday that it has entered into a co-exclusive license agreement with Mutual Pharmaceutical Co. Inc. for Skelaxin, the muscle-relaxant metaxalone.

Under the terms of the agreement, each of the parties has granted the other a worldwide license to certain intellectual property, including patent rights and know-how, relating to metaxalone, according to a news release.

The intellectual property licensed to King relates to the potential for improved dosing and administration of metaxalone, officials said.

Pursuant to the agreement, King said it will pay Mutual an upfront payment of $35 million and royalties on net sales of products containing metaxalone, officials said.

The royalty rate will vary depending on the achievement of certain regulatory and commercial milestones and future net sales of metaxalone products.

King is a Bristol, Tenn., pharmaceutical company that capitalizes on opportunities in the pharmaceutical industry through development, including in-licensing arrangements and acquisitions, of novel branded prescription pharmaceutical products.

Mutual is a Philadelphia-based generic pharmaceutical company.

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