Salix, Progenics ink licensing deal for Relistor

TARRYTOWN, N.Y. — Salix Pharmaceuticals and Progenics Pharmaceuticals have entered a licensing agreement for a drug used to treat side effects of opioid use.

The two companies signed the agreement for Relistor (methylnaltrexone bromide), an injected drug used to treat opioid-induced constipation in patients for whom laxatives haven’t worked.

Under the agreement, Salix will license rights to the drug worldwide, except for in Japan, where Progenics has an agreement with Ono Pharmaceuticals. Salix will pay Progenics $60 million upfront and $90 million in milestone payments, as well as up to $200 million in royalties on sales and 60% of all revenue received from non-U.S. sublicensees.

Worldwide net sales of the drug were $16 million in 2010, according to the companies.