Covidien enters new market with $130M Nuvo deal

Nuvo Research is pocketing a $10 million up-front fee after forging a licensing deal with Covidien covering two topical anti-inflammatories. The developer says it will gain $15 million to $20 million more if the FDA approves Pennsaid, which is scheduled to get a regulatory decision by August 5. And another $100 million in sales milestones is on the table.

For Covidien, a big player in the generic pain medicine market, the licensing deal with Nuvo marks its entry into the branded market. Pennsaid is the cream version of diclofenac. The second program Coviden licensed is a follow-on therapy.

"We are pleased to be collaborating with Nuvo Research on topical formulations of diclofenac and the opportunity to expand our branded pharmaceutical portfolio," said Timothy R. Wright, president of pharmaceutical products and imaging solutions, Covidien. "While we face difficult comparisons in 2010 in our pharmaceutical business, we are excited about the potential of these products to accelerate our performance in 2011 and beyond."

- check out the Covidien release
- read the story from Reuters

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