(RTTNews) -  Monday, specialty pharmaceutical company Hi Tech Pharmacal Co. Inc.(HITK: News ) said its subsidiary ECR Pharmaceuticals signed a deal with NovaDel Pharma, Inc., by which ECR will exclusively market 5 mg zolpidem tartrate oral spray in the United States and Canada.

The company said it paid $3 million upon closing to NovaDel, as per the terms of the agreement. The Amityville, New York based company said NovaDel will receive a royalty of up to 15% on net sales, and a milestone payment if net sales reach a specific level in a calendar year.

The FDA approved product, branded Zolpimist is recommended for short-term treatment of insomnia characterized by difficulties with sleep initiation, and will be available only by prescription

ECR said it plans to launch the product in the first half of the calendar 2010 in the United States. Zolpimist is indicated as the only approved sleep aid which contains zolpidem tartrate in an oral spray form.
NovaDel in October had received a notice of Allowance from the United States Patent and trademark Office for claims under U.S. Patent related to Zolpimist. The patent once issued will expire in 2018.

HITK is currently trading at $19.99,up $0.81 or 4.22% on the Nasdaq

To receive FREE breaking news email alerts for Hi-Tech Pharmacal Inc and others in your portfolio

by RTT Staff Writer

For comments and feedback: contact editorial@rttnews.com