Benzinga | Apr 9, 2021 07:00AM EDT

KemPharm Amends Licensing Agreement With Gurnet Point Capital, Increases Milestone Payments To $590M

* KemPharm Inc (NASDAQ: KMPH) has amended the collaboration and license agreement with Gurnet Point Capital (GPC), a private investment firm.

* The agreement provides for an exclusive worldwide license to develop, manufacture, and commercialize KemPharm's product candidates containing serdexmethylphenidate (SDX) and d-methylphenidate (d-MPH).

* The deal also includes Azstarys (formerly referred to as KP415) for attention deficit hyperactivity disorder (ADHD) in patients age six years and older.

* Azstarys received FDA approval in March of this year.

* Under the terms of the amended agreement, KemPharm is eligible to receive a total of up to $590 million in milestone payments for Azstarys, as well as tiered royalty payments on a product-by-product basis for net sales.

* Royalty rates range from a percentage in the high single digits up to the mid-twenties for U.S. net sales and a share in the low to mid-single digits of net sales in each country outside of the U.S.

* Under the original terms, KemPharm was eligible to receive up to $468 million.

* Price Action: KMPH shares are up 2.1% at $10.4 in the premarket session on the last check Friday.