REMOXY™

Remoxy is a unique, long-acting formulation of oral oxycodone for moderate to severe chronic pain, designed to resist common methods of prescription drug misuse and abuse.

Pain Therapeutics Receives Complete Response Letter From FDA for REMOXY(R).

Remoxy is intended to meet the needs of physicians who appropriately prescribe opioid painkillers and who seek to minimize risks of drug diversion, abuse or accidental patient misuse. Remoxy resists injection or snorting. Published data also show that freezing, crushing or submerging Remoxy in high-proof alcohol for hours at a time releases just a fraction of oxycodone at time points when abusers presumably expect to get high.

In November 2005, we entered into a $400M strategic alliance with King Pharmaceuticals, Inc. (NYSE: KG) to develop and commercialize Remoxy and three other abuse-deterrent opioid painkillers. Terms included an upfront payment fee of $150M cash, $150M in clinical and regulatory milestones and $100M in research and development expenses. Additionally, King will record net sales of all products and pay Pain Therapeutics a 20% royalty, except for the first $1 billion in cumulative net sales, which royalty is set at 15%.