Egalet Corp. has entered into a definitive collaboration and license agreement with Shionogi Ltd. for the development and potential commercialization of multiple oral abuse-deterrent hydrocodone opioid product candidates using Egalet’s technology platform.

Egalet will receive $10 million upfront and is eligible to receive milestone payments of as much as $300 million for development and approval of products under the agreement, as well as royalties on sales that could exceed $100 million. Shionogi will fund all development costs and will have exclusive global commercialization rights. Shionogi has also agreed to purchase as much as $15 million in common stock in a private placement to close concurrently with Egalet’s recently filed IPO.

“With their commitment to pain therapeutics and their strong sales and marketing capabilities, we are pleased to be collaborating with Shionogi for the development and potential commercialization of abuse-deterrent hydrocodone products using our proprietary technology,” said Bob Radie, Egalet’s President and Chief Executive Officer. “We believe this collaboration provides validation for our proprietary abuse-deterrent drug delivery platform and positions us to capitalize on our technology, both through the products to be developed under the collaboration and by enabling us to develop additional opioid candidates utilizing our platform technology.”