Avanir Enters Worldwide Collaboration to Develop Therapeutics for Inflammation

April 29, 2005

Avanir Pharmaceuticals has announced the signing of a global research, development and commercialization agreement with Novartis to develop orally active small molecule therapeutics targeting macrophage migration inhibitory factor (MIF) as potential treatments for inflammatory diseases.

Under the terms of the agreement, Avanir is eligible to receive over $200 million in combined upfront and milestone payments upon achievement of development, regulatory and sales objectives. Avanir is also eligible to receive increasing royalties on worldwide product sales. Avanir will receive research funding of up to $2.5 million per year for up to four years. Novartis will assume all responsibility for product development expenses and both parties will contribute expertise and intellectual property.