Israeli group Teva Pharmaceutical Industries has bought itself a worldwide licence to US firm Xenon's experimental pain drug XEN402.
XEN402 is currently in clinical development for a variety of painful disorders, its mode of action to target sodium channels found in sensory nerve endings that are known to increase in chronic painful conditions.
Clinical trials to have shown that, in its oral format, the drug was effective in alleviating pain from a rare neuropathic pain condition called erythromelalgia, while in its topical form it also hit efficacy targets in patients with post herpetic neuralgia.
According to Teva, acquisition of XEN402 is in line with its focus on building a pipeline with novel medicines in certain areas of medical need.
Under the terms of the deal, the firm has agreed to pay Xenon an upfront fee of $41 million, as well as development, regulatory and sales-based milestones of up to $335 million.
In addition, Xenon will also get sales-based royalties and holds the right to opt into commercialisation of the drug in the US market.