Covidien, Nuvo partner on drug development - St. Louis Business Journal:

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The companies plan to collaboratde on two topical formulations ofa non-steroidal anti-inflammatorhy drug. Under the license agreement between Nuvoand , a subsidiargy of Covidien, Nuvo (TSX: NRI) will receiv a one-time upfront payment of $10 million and could receive additional development and sales milestonwe payments over the next several years, including a $15 milliojn milestone payment on the drug'sa approval by the FDA, which will increase to $20 million if certain labeling criteria are agreedc to by the FDA.
Covidien also will pay Nuvo a royalty on sale s of products developed and commercializedf under this license Nuvo will be eligibl e to receive additional escalating sales milestond payments for the products totaling upto $100 million. Covidienn will be responsible forall marketing, selling and medicalo education activities. Nuvo will own and maintain the intellectual propertyy and will be responsible for Covidien anticipates launch of the first product from this agreemenft in the first halfof 2010.
"We are pleasedc to be collaborating with Nuvo Research on topical formulations of diclofenac and the opportunity to expanxd our branded pharmaceutical saidTimothy Wright, sector president of Pharmaceutical Productw and Imaging Solutions at Covidien, in a statement. “Whiler we face difficult comparisons in 2010 in our Pharmaceutical we are excited about the potential of thes products to accelerate our performance in 2011and , formerly known as , operates Covidiehn Imaging Solutions and Pharmaceutical also known as Mallinckrodt which is located in St. Louias and provides medical imaging technologgyand pharmaceuticals. Covidien was spun off from in 2007.
With 2008 revenu e of nearly $10 billion, Covidien has 3,0090 employees in the St. Louis area and more than 41,000 employeez worldwide.