KemPharm Amends Licensing Agreement With Gurnet Point Capital, Increases Milestone Payments To $590M

KemPharm Inc KMPH has amended the collaboration and license agreement with Gurnet Point Capital (GPC), a private investment firm.
The agreement provides for an exclusive worldwide license to develop, manufacture, and commercialize KemPharm's product candidates containing serdexmethylphenidate (SDX) and d-methylphenidate (d-MPH).
The deal also includes Azstarys (formerly referred to as KP415) for attention deficit hyperactivity disorder (ADHD) in patients age six years and older.
Azstarys received FDA approval in March of this year.
Under the terms of the amended agreement, KemPharm is eligible to receive a total of up to $590 million in milestone payments for Azstarys, as well as tiered royalty payments on a product-by-product basis for net sales.
Royalty rates range from a percentage in the high single digits up to the mid-twenties for U.S. net sales and a share in the low to mid-single digits of net sales in each country outside of the U.S.
Under the original terms, KemPharm was eligible to receive up to $468 million.
Price Action: KMPH shares are up 2.1% at $10.4 in the premarket session on the last check Friday.