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CONTACT:
Acura Pharmaceuticals, Inc.
Peter
A. Clemens, SVP Investor Relations & CFO
847-705-7709
FOR IMMEDIATE RELEASE
ACURA PHARMACEUTICALS, INC. ANNOUNCES RECEIPT OF $30 MILLION
CASH PAYMENT AND CLOSING OF AGREEMENT WITH KING
PHARMACEUTICALS
Palatine, IL, December 10, 2007: Acura
Pharmaceuticals, Inc. (OTC.BB-ACPH.OB) today announced the closing
of the License, Development and Commercialization Agreement (the
“Agreement”) with King Pharmaceuticals Research and
Development, Inc., a subsidiary of King Pharmaceuticals, Inc.
(“King”) and receipt of the initial $30 million
non-refundable cash payment from King under the Agreement. The
Agreement closing was subject to clearance under the
Hart-Scott-Rodino Antitrust Improvements Act which was received
December 6, 2007. Upon the closing of the Agreement, the Company
paid off its $5 million secured term note in accordance with the
Agreement and the prepayment provisions of the secured term note.
The Company now has no term debt on its balance sheet.
The
Agreement provides King with an exclusive license in the
United States, Canada, and Mexico (the "Territory") for
ACUROX™ Tablets plus another undisclosed opioid product
candidate utilizing Acura's Aversion® Technology. In
addition, the Agreement provides King with an option to
license in the Territory all future opioid analgesic products
developed utilizing Acura's Aversion® Technology. In
addition to the $30 million initial payment announced today,
Acura could also receive additional cash payments from King of
up to $28 million for ACUROX™ Tablets and similar
amounts with respect to each future product licensed based on
successful achievement of certain development and regulatory
milestones specified in the Agreement. King will reimburse
Acura for all ACUROX™ Tablet research and development
expenses incurred beginning from September 19, 2007 and all
research and development expenses related to future products
after King's exercise of its option to an exclusive license
for each future product. King will record net sales of all
products and pay Acura a royalty ranging from 5% to 25%
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