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Transcept Pharma Receives $10 Mln Milestone Payment From Purdue - Quick Facts

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12/21/2011 4:17 PM ET

Transcept Pharmaceuticals Inc. (TSPT: Quote) said Wednesday it received a $10 million milestone payment from Purdue Pharma LP in connection with the listing of Intermezzo formulation patents in the FDA Orange Book on December 15, 2011.

The milestone payment was made under the terms of the agreement between Purdue and Transcept for the commercialization of insomnia drug Intermezzo in the US. Purdue plans to launch Intermezzo in the second quarter of 2012 and to invest about $100 million to support marketing during the first year of commercialization.

On November 23, 2011, the FDA approved Intermezzo (zolpidem tartrate) sublingual tablet C-IV for use as needed for the treatment of insomnia when a middle-of-the-night awakening is followed by difficulty returning to sleep.

Transcept reported cash, cash equivalents and marketable securities of $54.1 million at September 30, 2011, and excludes the $10 million payment received today.

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