* Deal includes $60 mln upfront, $90 mln milestone payments
* Salix to fund Relistor development outside Japan
* To get royalties, sales milestones up to $200 mln
* Shares up 11 pct
(Adds analyst comment, background; updates share movement)
By Vidya L Nathan
BANGALORE, Feb 7 Progenics Pharmaceuticals Inc
PGNX.0 sold the rights for its constipation shot Relistor to
Salix Pharmaceuticals Ltd SLXP.O within two months of former
partner Pfizer Inc (PFE.N) returning it.
Shares of the Tarrytown, New York-based company, which have
risen 16 percent since Pfizer returned the rights on Dec. 10,
were up 11 percent in morning trade on the Nasdaq.
The deal, which does not include rights for the product in
Japan, consists of $60 million in upfront payments and $90
million in milestone payments in exchange for rights on the
injection that treats opioid induced constipation.
"(The deal) is good for Progenics because they needed a
commercial partner and Pfizer was not paying them any royalties
at this point. It was important for them to get re-established
commercially with Relistor," said Needham & Co's Alan Carr.
Rights to the product, which has been approved in the
United States, Canada and the European Union, was returned from
Progenics' former partner Wyeth -- now a unit of Pfizer.
In 2005, Progenics had licensed Relistor to Wyeth, for
upfront payment of $60 million.
Progenics will also get sales-based milestones of up to
$200 million plus royalties on product sales in the United
States, as well as 60 percent of all revenue received from
The companies said Relistor, which has been licensed to Ono
Pharmaceuticals in Japan, booked about $16 million in worldwide
sales for 2010.
The companies expect Salix to take over the funding of
Relistor's development and marketing from Pfizer in April.
(Reporting by Vidya L Nathan in BANGALORE, additional
reporting by Rajarshi Basu; Editing by Jarshad Kakkrakandy)