- Adolor was awaiting approval of its lead compound Entereg and looking to develop a new compound called Delta which would be costly. It entered a collaboration deal with Pfizer to share these development costs and risks. - Under the terms of the 2007 deal, Pfizer paid Adolor $30 million upfront and agreed to fund 60% of US development costs for Delta in exchange for 60% of US profits. Adolor retained rights to royalties on sales in rest of world. - The deal structure was similar to other recent deals in the pain drug space, including an upfront payment, development and regulatory milestones, and a profit share arrangement in major markets.

1. Key Considerations for Structuring a Winning Deal- A Biotech Approach Thomas Hess Former Chief Financial Officer of Adolor Corporation (currently CFO of Yaupon Therapeutics) September 16, 2008 © 2008 Adolor Corporation. All rights reserved.