The Food and Drug Administration approved the sale of CombinatoRx Inc.'s extended-release pain drug Exalgo, the company said Tuesday.
Exalgo is intended to treat moderate to severe pain in patients who require treatment with opioid painkillers for an extended period of time. CombinatoRx developed the drug, and Covidien PLC is responsible for marketing, sales, and regulatory filings after approval.
Covidien will pay CombinatoRx $40 million as a result of the FDA ruling, and CombinatoRx will also get royalty payments on sales of Exalgo.
Shares of Cambridge, Mass.-based CombinatoRx jumped 46 cents, or 41.4 percent, to $1.57 in premarket trading. Shares of Covidien, which is based in Ireland, were unchanged at $49.53.