FDA approves Pennsaid topical solution

The FDA cleared the sale in the U.S. of Nuvo Research’s Pennsaid topical solution to treat osteoarthritis of the knee, with distributor Covidien set to launch the product in the first half next year.

“FDA approval of Pennsaid is the most significant milestone in Nuvo’s history,” Dan Chicoine, chairman of Nuvo (TSX:NRI), said in a statement.

Nuvo will now receive a $15-million (U.S.) milestone payment from Covidien.   Going forward, it will receive royalties on net U.S. sales of Pennsaid at rates that are consistent with industry standards.  Nuvo also said it will also be eligible to receive additional escalating sales milestone payments for Pennsaid and Pennsaid Plus totaling up to $100-million.