Pain Therapeutics modifies strategic alliance with King Pharmaceuticals for REMOXY outside U.S.

Flat Royalty Rate of 10% in Europe

$5 Million Cash Payment from Commercial Partner

REMOXY NDA Resubmission Still Anticipated Q4 2010

Pain Therapeutics, Inc. (Nasdaq:PTIE) announced today a modification of its strategic alliance with King Pharmaceuticals, Inc. (NYSE:KG) for REMOXY outside the U.S. The move signals a desire to target Europe's small and growing market for strong pain medications.

"With the NDA resubmission in sight, we feel now is the time to turn our attention to Europe," said Remi Barbier, President & Chief Executive Officer of Pain Therapeutics. 

King and Pain Therapeutics believe the target market for strong pain medication in Europe is smaller than the U.S. market for similar drugs. To accommodate a cohesive commercial strategy for REMOXY outside the U.S., King Pharmaceuticals and Pain Therapeutics recently modified a royalty term of their strategic alliance. Pain Therapeutics will now receive a flat royalty rate of 10% on net sales of REMOXY outside the U.S. We also expect to receive from King Pharmaceuticals a one-time payment of $5,000,000.00 in July 2010. 

Pain Therapeutics' royalty rate in the U.S. and its potential milestone payments are unchanged.