EpiCept Corporation (Nasdaq and Nasdaq OMX Stockholm Exchange: EPCT) today announced that it has earned a $2 million milestone payment from Meda AB, (OMX Nordic Exchange: MEDA-A-ST), for the first commercial shipment of Ceplene® (histamine dihydrochloride) to a major country in the European Union, as defined in the agreement. The milestone payment is part of an exclusive commercial licensing agreement for Ceplene® with Meda in Europe and certain Pacific Rim countries signed by the two companies in January, 2010.
Ceplene® is EpiCept's novel therapy approved in the European Union with orphan drug status for the remission maintenance and prevention of relapse of patients with acute myeloid leukemia (AML) in first remission. Under the agreement, EpiCept is eligible to receive a $5 million payment upon achievement of a regulatory milestone and up to $30 million in sales-based milestones that commence upon attainment of at least $50 million in annual sales. EpiCept also receives a double digit percent royalty on net sales in the covered territories.