Article: AVANIR Pharmaceuticals to Receive $24 Million for Rights to Abreva(R) North American Royalty Stream.

AVANIR Pharmaceuticals announced today that it has sold a portion of its future royalty stream on North American sales of Abreva(R) to Drug Royalty USA for $24.1 million. AVANIR retains rights to all current and future royalties from product sales in the rest of the world. AVANIR also retains the rights to other potential product indications, such as HSV2 and herpes zoster.

Terms of the license purchase agreement with Drug Royalty provide for an initial payment of $20.5 million that was received on December 4, 2002. AVANIR retains rights to 50% of royalties earned on sales of Abreva in excess of $62 million a year. AVANIR will receive an additional $3.6 ...

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