Covidien, Nuvo partner on drug development - Baltimore Business Journal:

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The companies plan to collaborate on two topical formulations ofa non-steroidakl anti-inflammatory drug. Under the license agreement between Nuvoand , a subsidiaruy of Covidien, Nuvo (TSX: NRI) will receivw a one-time upfront payment of $10 million and coulsd receive additional development and sales milestone paymentsz over the next severall years, including a $15 million milestone payment on the drug's approvalo by the FDA, which will increasd to $20 million if certain labelintg criteria are agreed to by the FDA. Covidiejn also will pay Nuvo a royalty on sales of products developed and commercialized under thislicense agreement.
Nuvo will be eligible to receivs additional escalating sales milestone payments for the products totalinh upto $100 million. Covidien will be responsible for all selling and medicaleducation activities. Nuvo will own and maintaih the intellectual property and will be responsible for Covidien anticipates launch of the firsft product from this agreement in the first halfof 2010. "Wee are pleased to be collaborating with Nuvo Researchh on topical formulations of diclofenac and the opportunity to expandf our brandedpharmaceutical portfolio,” said Timothy Wright, sector president of Pharmaceuticalk Products and Imaging Solutions at Covidien, in a “While we face difficult comparisons in 2010 in our Pharmaceutica l business, we are excited about the potentialk of these products to accelerate our performanced in 2011 and beyond.
” , formerlgy known as , operates Covidien Imaging Solutiona and Pharmaceutical Products, also knownm as Mallinckrodt Inc., which is locater in St. Louis and provides medicapl imaging technologyand pharmaceuticals. Covidienh was spun off from in 2007. With 2008 revenud of nearly $10 billion, Covidien has 3,000 employeex in the St. Louis area and more than 41,000o employees worldwide.