Penwest Pharmaceuticals said it has signed a drug development and commercialisation agreement with Alvogen, under which the partners will develop five compounds.

Penwest will formulate the compounds and receive milestone and royalty payments associated with individual compound development.

Penwest will leverage its TIMERx technology for the formulation of generics.

Alvogen will be responsible for clinical trials, regulatory filings and the manufacturing of the formulations, as well as the commercialisation of the products worldwide.