Document:

<PAGE>

                                                                    Exhibit 10.6

[WEST PHARMACEUTICAL SERVICES LOGO]

Certain confidential portions of this Exhibit were omitted by means of blackout
of the text (the "Mark"). This Exhibit has been filed separately with the
Secretary of the Securities and Exchange Commission without the Mark pursuant to
the Company's Application for Order Granting Confidential Treatment pursuant to
Rule 406 under the Securities Act of 1933, as amended.

                       WEST PHARMACEUTICAL SERVICES, INC.

                         And its wholly owned subsidiary

                   WEST PHARMACEUTICAL SERVICES DRUG DELIVERY
                         & CLINICAL RESEARCH CENTRE LTD.

                                       And

                     INNOVATIVE DRUG DELIVERY SYSTEMS, INC.

               --------------------------------------------------

                   DEVELOPMENT MILESTONE AND OPTION AGREEMENT

                                (Nasal Morphine)

               --------------------------------------------------

                            Dated September 22, 2000

<PAGE>

                   DEVELOPMENT MILESTONE AND OPTION AGREEMENT

         THIS IS A DEVELOPMENT MILESTONE AND OPTION AGREEMENT (the "Agreement"),
dated as of September 22, 2000 (the "Effective Date"), among West Pharmaceutical
Services, Inc., a Pennsylvania corporation, ("West") with offices at 101 Gordon
Drive, Lionville, PA, 19341, its wholly owned subsidiary West Pharmaceutical
Services Drug Delivery & Clinical Research Centre Ltd., a corporation organized
under the laws of England and Wales, ("West/Nottingham") with offices at Albert
Einstein Centre, Nottingham Science & Technology Park, University Boulevard,
Nottingham, NG7 2TN, United Kingdom (West and West/Nottingham collectively being
referred to herein as the "West Group"); and Innovative Drug Delivery Systems,
Inc., a Delaware corporation, ("IDDS") with offices located at 787 Seventh
Avenue, New York, New York 10019.

                                   Background

         The West Group has completed pre-clinical development work for the
development of a product for administering morphine via the nasal mucosa using
its patented and proprietary delivery technology. The Parties have entered into
a License Agreement as of August 25, 2000 (the "License Agreement") under which
West and West/Nottingham have granted IDDS exclusive worldwide rights to exploit
such technology to make, use and sell certain Identified Products, including
morphine, for the treatment of pain in humans and animals.

         IDDS desires to conduct further development work and to pay West
certain milestone payments with respect thereto, and also desires to grant West
an option to manufacture commercial quantities of the developed products, all on
the terms and conditions set forth herein.

                                    Agreement

         Accordingly, intending to be legally bound, the Parties agree as
follows:

1.       Definitions. Terms defined in this Section 1 and parenthetically
         elsewhere in this Agreement will throughout this Agreement have the
         meanings here or there provided. Defined terms may be used in the
         singular or in the plural, as sense shall require.

         1.1.     "Affiliate" means, with respect to any Party, an entity, over
                  50% of the voting securities of which are directly or
                  indirectly controlled by such Party, or an entity that
                  directly or indirectly controls over 50% of the voting
                  securities of such Party.

         1.2.     "Background IP" means know-how, knowledge, experience,
                  inventions, processes, technical information, trade secrets,
                  formulas, protocols, data and results (and any patents and
                  patent applications claiming any of the foregoing) arising
                  from or acquired outside the development activities under this
                  Agreement that is necessary or useful for practicing the art
                  covered by the Licensed Patents or the Program IP.

<PAGE>

         1.3.     "Development Program" means the program of work for the
                  development of the Licensed Product, including milestones to
                  be achieved, cost estimates, relevant time schedules, etc.,
                  attached hereto as "Exhibit A" and as modified from time to
                  time by written agreement of the Parties.

         1.4.     "EMEA" means the European Agency for the Evaluation of Medical
                  Products.

         1.5.     "Fair Market Value" means, with respect to NLPT Securities,
                  the average closing bid price as quoted by the Exchange for
                  the 20-Business Day period that commences on the 10th Business
                  Day immediately preceding the date of the event that triggers
                  the milestone payment and ends on the 10th Business Day
                  immediately following such date. As used herein, a "Business
                  Day" is a day on which banks and the Exchange are open for the
                  transaction of business in New York City.

         1.6.     "Field of Use" means the delivery of opium alkaloid morphine
                  and/or a salt thereof via the nasal mucosa to humans or
                  animals for the treatment of pain.

         1.7.     "FDA" means the U.S. Food and Drug Administration.

         1.8.     "IND" means an Investigational New Drug Application.

         1.9.     "Launch" means commencement of commercial sale of the Licensed
                  Product following receipt of all necessary Regulatory Agency
                  approvals

         1.10.    "Launch Date" means the date of the first such commercial sale
                  following the Launch.

         1.11.    "Licensed Patents" means the letters patent and letters patent
                  that may issue from patent applications listed in Schedule 1
                  of the License Agreement which relate to nasal morphine,
                  including all continuations, continuations-in-part,
                  divisionals, reissues and reexaminations thereof

         1.12.    "Licensed Product" means opium alkaloid morphine and/or a salt
                  thereof combined with chitosan or a chitosan derivative or
                  salt for administration to humans and animals via the nasal
                  mucosa and which is covered by one or more claims of the
                  Licensed Patents.

         1.13.    "Major Market Country" means the United States, Japan, or any
                  European Union nation party to the EMEA Mutual Recognition
                  guidelines for pharmaceutical products.

                                      -2-
<PAGE>

         1.14.    "NLPT Securities" means equity securities of IDDS or an
                  Affiliate of IDDS that are listed on any of the New York Stock
                  Exchange, NASDAQ National Market System, NASDAQ Small-Cap
                  Market or American Stock Exchange (each, an "Exchange") and
                  that meet the continuing listing requirements of such Exchange
                  at the time the securities are issued.

         1.15.    "NDA" means a New Drug Application in the U.S., or the
                  analogous process as defined in applicable laws and
                  regulations by which application is made with the appropriate
                  Regulatory Agency of a given country for approval to market a
                  drug in that country.

         1.16.    "Party" means a party to this Agreement.

         1.17.    "Person" means an individual, partnership, limited liability
                  company, corporation, trust or unincorporated organization or
                  other business entity, and a government or agency or political
                  subdivision thereof

         1.18.    "Program IP" means know-how, knowledge, experience,
                  inventions, processes, technical information, trade secrets,
                  formulas, protocols, data and results (and any patents and
                  patent applications claiming any of the foregoing), arising
                  from or acquired specifically in the course of the development
                  activities covered by this Agreement that relate specifically
                  to the Licensed Product within the Field of Use.

         1.19.    "Regulatory Agency" means any governmental regulatory
                  authority responsible for granting health or pricing
                  approvals, registrations, import permits and other approvals
                  required before the Licensed Product may be tested or marketed
                  in any country. Regulatory Agency shall include the FDA, EMEA
                  and any analogous agency in any other country or region.

2.       Development Activities.

         2.1.     IDDS's Development and Commercialization Obligations. IDDS
                  shall, at its cost and expense, conduct the following
                  activities:

                  2.1.1.   Perform the work set forth in and in accordance with
                           the Development Program in cooperation with West;

                  2.1.2.   Diligently perform all activities necessary or
                           appropriate to obtain and maintain in full force and
                           effect Regulatory Agency approval in the U.S. and,
                           following U.S. approval, each Major Market Country
                           for the marketing of the Licensed Product in the
                           Field of Use; provided, that IDDS shall not We
                           required to pursue such Regulatory Agency approvals
                           in multiple Major Market Countries simultaneously and
                           IDDS may pursue such Regulatory Agency approvals in
                           such order as it decides consistent with a
                           commercially reasonable regulatory strategy;

                                      -3-
<PAGE>

                  2.1.3.   At the earliest possible time, consistent with sound
                           scientific and business principles, file applications
                           for, and use its best commercial efforts to pursue
                           Regulatory Agency approval to sell, the Licensed
                           Product in each Major Market Country and, either
                           directly or through sublicensees under the License
                           Agreement, in other countries where a reasonable
                           market opportunity exists;

                  2.1.4.   Use all reasonable commercial efforts to Launch the
                           Licensed Product within 90 days after receiving all
                           necessary approvals in each such country; and

                  2.1.5.   Maintain in full force and effect one or more
                           policies of insurance providing continuous coverage
                           of all of its development activities (including
                           without limitation insurance covering clinical
                           trials) hereunder in such amounts and against such
                           risks as is customary by companies engaged in the
                           same or similar business and similarly located, and
                           shall, upon West's request, furnish evidence
                           reasonably satisfactory to West of such insurance.
                           IDDS shall use its best efforts to ensure that such
                           policies shall, at a minimum, provide for:

                           (a) no less than $*** professional clinical trial
                               insurance coverage, including products and
                               complete operations coverage; and

                           (b) no less than 30 days advance notice to West
                               from the insurer or broker of any change or
                               cancellation of such coverage.

         2.2.     West's Obligations.

                  2.2.1.   West shall, at its cost and expense, reasonably
                           cooperate with IDDS and provide IDDS with such
                           information and documentation in West's possession,
                           including without limitation data, graphs, figures
                           and specifications, as may be reasonably required for
                           IDDS to perform its development and commercialization
                           obligations hereunder (including without limitation
                           the necessary U.S. and foreign regulatory filings);
                           provided that this Section shall not be construed to
                           require West to perform any studies, trials or other
                           development or commercialization work.

                  2.2.2.   West shall, at its cost and expense, perform the work
                           set forth as West's responsibilities in and in
                           accordance with the Development Program.

         2.3.     Survival of Obligations. Notwithstanding any other provision
                  of this Agreement, so long as the License Agreement remains in
                  effect, the obligations of IDDS under this Section 2 and the
                  obligations to West under Section 2.2.1 shall survive any
                  termination of this Agreement for any reason whatsoever,
                  including without limitation by reason of breach by West or
                  West/Nottingham.

*** Represents material which has been omitted pursuant to an Application for
    Order Granting Confidential Treatment and filed separately with the
    Commission.

                                      -4-
<PAGE>

         2.4.     IDDS IND Filing. IDDS shall have the right, in its sole
                  discretion, to cross-file in the name of IDDS, the IND held by
                  West for the Licensed Product.

3.       Payments.

         3.1.     Milestone Payments. In consideration of the obligations
                  undertaken by West and West/Nottingham and the rights granted
                  to IDDS under this Agreement and the License Agreement, IDDS
                  shall pay to West:

                  3.1.2    Within 30 days following the administration of the
                           first dose in the first pivotal Phase III trial for a
                           Licensed Product that is under development through a
                           West-sponsored or IDDS-sponsored IND (or other
                           equivalent regulatory filing such as a CTX), the
                           amount of $***;

                  3.1.3    Within 60 days following the first filing of an NDA
                           with a Regulatory Agency in a Major Market Country
                           for the Licensed Product, the amount of $***;
                           and

                  3.1.4    Within 60 days following the date of the receipt of
                           the first approvable letter from a Regulatory Agency
                           of an NDA in a Major Market Country for a Licensed
                           Product, the amount of $***.

         3.2      Extended Payment Date and Interest Thereon. Notwithstanding
                  the foregoing, IDDS may pay the amounts due under Sections
                  3.1.3 and 3.1.4 hereof up to an additional 30 days following
                  the applicable due date (i.e., up to 90 days after such due
                  date) without being in violation of this Agreement, provided
                  that any amounts remaining unpaid after 60 days from the due
                  date shall bear interest at the U.S. prime interest rate for
                  short-term funds plus two percentage points from such due date
                  until the date it is received. The interest will be calculated
                  on a daily average basis.

         3.3      Manner of Payment. Except as provided in Section 3.4 hereof,
                  all amounts payable under this Agreement shall be in United
                  States dollars by wire transfer of immediately available funds
                  to an account or accounts specified in writing by West at
                  least five d&ys pnor to the due date thereof.

         3.4      Payment By Issuance of NLPT Securities.

                  3.4.1    If the Parties mutually agree, some or all of the
                           amounts due under Sections 3.1.3 and/or 3.1.4 hereof
                           may be paid by issuance to West of a number of shares
                           of NLPT Securities equal to the applicable payment
                           amount divided by the Fair Market Value; provided
                           that at the time the NLPT Securities are issued, the
                           aggregate percentage of the total outstanding
                           securities of the issuing company (the "Issuer") held
                           by West shall not exceed 19.9%.

*** Represents material which has been omitted pursuant to an Application for
    Order Granting Confidential Treatment and filed separately with the
    Commission.

                                      -5-
<PAGE>

                  3.4.2    The Parties shall use their best efforts
                           approximately 60 days prior to the estimated date of
                           achievement of a milestone event to meet and discuss
                           the option of taking payment in NLPT Securities in
                           lieu of cash.

                  3.4.3    Any NLPT Securities issued pursuant to this Section
                           3.4 shall be subject to the Securities Issuance and
                           Registration Rights Agreement between West and IDDS
                           entered into as of September 22,2000.

         3.5      Survival of Obligation to Make Milestone Payments.
                  Notwithstanding any other provision of this Agreement, so long
                  as the License Agreement remains in effect, the obligations of
                  IDDS under this Section 3 shall survive any termination of
                  this Agreement for any reason whatsoever, including without
                  limitation by reason of breach by any member of the West
                  Group.

4.       Option to Manufacture. IDDS hereby grants to West an option to first
         negotiate with IDDS for the right to manufacture and/or package
         commercial quantities of the Licensed Product (the "Manufacturing
         Rights Option"), as follows:

         4.1.     No later than 18 months prior to the estimated Launch Date,
                  IDDS shall notify West of its anticipated need for commercial
                  quantities of Licensed Product. Such notice shall include
                  reasonable details of its requirements, including first-year
                  volume forecast, target pricing and other information
                  reasonably available to IDDS that shall have a bearing on
                  West's decision to exercise the Manufacturing Rights Option.

         4.2.     Within 15 days following receipt of IDDS's notice under
                  Section 4.1 hereof, West shall notify IDDS of its intent to
                  exercise or not exercise the Manufacturing Rights Option.

         4.3.     If West exercises its Manufacturing Rights Option, West and
                  IDDS shall promptly commence and diligently pursue for the
                  next 45 days good-faith negotiations towards agreement to, and
                  execution of, a definitive supply agreement with respect
                  thereto. The definitive agreement shall contain terms and
                  conditions that are usual and customary for supply agreements
                  of similar type for goods of similar kind and quantity in the
                  U.S.

         4.4.     If West fails to exercise its Manufacturing Rights Option
                  within the time period set forth in Section 4.2 hereof, or
                  West and IDDS fail to conclude agreement on the terms of such
                  agreement within the time period set forth in Section 4.3
                  hereof, then IDDS shall be free to negotiate with and conclude
                  agreements with third Persons for manufacturing and/or
                  packaging of the Licensed Product, provided that no such
                  agreement (i) shall contain price terms or other terms and
                  conditions that, in the aggregate, are less favorable to IDDS
                  than the West's last proposal or (ii) shall contain any
                  material terms and conditions that are more favorable to the
                  third Person than the terms and conditions set forth in
                  IDDS's notice to West under Section 4.1 hereof

                                      -6-
<PAGE>

5.       Intellectual Property Rights.

         5.1      Each Party shall own all intellectual property developed by
                  its independent research and development projects.

         5.2      West and West/Nottingham own and shall own all Background IP.

         5.3      IDDS shall own all Program IP developed by the IDDS-funded
                  portions of the Development Program, provided that West shall
                  have a non-exclusive, worldwide, fully paid-up, royalty-free,
                  perpetual license (with right to sublicense) to all such
                  Program IP relating in any way to manufacturing, scale-up and
                  production processes, techniques, inventions and know-how,
                  including without limitation clinical- and production-scale
                  manufacturing processes.

6.       Term and Termination.

         6.1      Term and Expiration. This Agreement shall become effective as
                  of the Effective Date and, unless terminated earlier pursuant
                  to this Section 6, shall remain in effect until the last to
                  occur Launch Date after the Licensed Product has been Launched
                  in all Major Market Countries.

         6.2      Termination. This Agreement may be terminated as follows:

                  6.2.1    By mutual consent of the Parties at any time.

                  6.2.2    By either West or IDDS upon written notice to the
                           other:

                           (a) in the event of a default by the other Party
                               in the due observance or performance of any
                               covenant, condition or limitation of this
                               Agreement or the License Agreement, but only
                               if the defaulting Party will not have
                               remedied its default within 30 days (or
                               within five Business Days in the event of
                               default under Section 3) after receipt of
                               written notice of such default from
                               th~non-defaulting party; or

                           (b) if the other Party is adjudicated a
                               bankrupt, if insolvency, bankruptcy,
                               reorganization, debt adjustment or
                               liquidation proceedings are instituted
                               against such Party and not dismissed within
                               60 days after the institution thereof, if a
                               receiver or trustee is appointed for such
                               party and its assets, or if such Party makes a
                               general assignment for the benefit of its
                               creditors.

                                      -7-
<PAGE>

         6.3      Survival. Notwithstanding the termination of this Agreement,
                  all rights and obligations that by their terms survive
                  termination shall remain unaffected until the complete
                  satisfaction or expiration thereof

7.       Representations and Disclaimer.

         7.1      Representations by West and West/Nottingham. Each of West and
                  West/Nottingham represents and warrants to IDDS:

                  7.1.1    It has the full legal right, power and authority to
                           enter in this Agreement.

                  7.1.2    It has not entered, and will not enter, into any
                           agreement that conflicts with the provisions of this
                           Agreement.

         7.2      Representations by IDDS. IDDS represents and warrants to West
                  and West/Nottingham:

                  7.2.1    It has the full legal right, power and authority to
                           enter in this Agreement.

                  7.2.2    It has not entered, and will not enter, into any
                           agreement that conflicts with the provisions of this
                           Agreement.

         7.3      Disclaimer of Warranties. EXCEPT AS OTHERWISE EXPRESSLY SET
                  FORTH IN THIS AGREEMENT, NEITHER WEST NOR WEST/NOTTINGHAM
                  MAKES ANY REPRESENTATION, GUARANTEE OR WARRANTY OF ANY KIND,
                  EITHER EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO
                  REPRESENTATIONS OR WARRANTIES TO THE SUCCESS OF ANY
                  DEVELOPMENT EFFORTS TO BE TAKEN HEREUNDER OR THE RESULTS TO BE
                  EXPECTED FROM IDDS'S USE OF ANY LICENSED PRODUCT OR FROM THE
                  MANUFACTURE, USE OR SALE OF THE LICENSED PRODUCT AND NO RIGHTS
                  IMPLIED OR OTHERWISE ARE GRANTED. NEITHER WEST,
                  WEST/NOTTINGHAM NOR ANY AFFILIATE OF ANY OF THEM SHALL HAVE
                  ANY RESPONSIBILITY TO IDDS OR OTHERS UNDER ANY LEGAL PRINCIPLE
                  FOR THE ABILITY OF IDDS OR THE QUALITY OR PERFORMANCE OF ANY
                  LICENSED PRODUCT DEVELOPED HEREUNDER; FOR CLAIMS OF THIRD
                  PERSONS RELATING TO ANY LICENSED PRODUCT MANUFACTURED OR SOLD
                  BY IDDS OR ANY OF ITS AFFILIATES OR SUBLICENSEES, OR FOR ANY
                  FAILURE IN LICENSED PRODUCTION, DESIGN OR OPERATION OF ANY
                  LICENSED PRODUCT MANUFACTURED OR SOLD BY ANY OF THEM. WEST AND
                  WEST/NOTTINGHAM DISCLAIM ANY WARRANTIES OF MERCHANTABILITY OR
                  FITNESS FOR A PARTICULAR USE. IN NO EVENT SHALL WEST,
                  WEST/NOTTINGHAM OR ANY AFFILIATE OF ANY OF THEM BE LIABLE TO
                  IDDS OR ANY AFFILIATE OR SUBLICENSEE FOR INDIRECT, SPECIAL,
                  INCIDENTAL OR CONSEQUENTIAL DAMAGES UNDER THIS AGREEMENT OR
                  OTHERWISE, REGARDLESS OF WHETHER WEST, WEST/NOTTINGHAM OR ANY
                  AFFILIATE OF ANY OF THEM KNEW OR HAD REASON TO KNOW OF THE
                  POSSIBILITY OF SUCH DAMAGES.

                                      -8-
<PAGE>

8.       Miscellaneous Provisions.

         8.1      Force Majeure. No Party hereto shall be held liable or
                  responsible to any other Party nor be deemed to have defaulted
                  under or breached this Agreement for failure or delay in
                  fulfilling or performing any term of the Agreement when such
                  failure or delay is caused by or results from causes beyond
                  the reasonable control of the Party failing to perform or
                  delayed in performing including, but not limited to, fire,
                  floods, embargoes, war, acts of war (whether war be declared
                  or not), insurrections, riots, civil commotions, strikes,
                  lockouts or other labor disturbances, acts of God or acts,
                  omissions or delays in acting by any governmental authority or
                  the other Party.

         8.2      Assignment. This Agreement may not be assigned or otherwise
                  transferred by any Party without the consent of the other
                  parties; provided, however, that either Party may, without
                  such consent, assign this Agreement and its rights and
                  obligations hereunder to its Affiliates or in connection with
                  the transfer or sale of all or substantially all of its
                  business, or in the event of its merger or consolidation or
                  change in control or similar transaction. Any purported
                  assignment in violation of the preceding sentence shall be
                  void. Any permitted assignee shall assume all obligations of
                  its assignor under this Agreement.

         8.3      Severability. In the event any one or more of the provisions
                  contained in this Agreement should be held invalid, illegal or
                  unenforceable in any respect, the validity, legality and
                  enforceability of the remaining provisions contained herein
                  shall not in any way be affected or impaired thereby, unless
                  the absence of the invalidated provision(s) adversely affect
                  the substantive rights of the parties. The parties shall in
                  such an instance use reasonable efforts to replace the
                  invalid, illegal or unenforceable provision(s) with valid,
                  legal and enforceable provision(s) which, insofar as
                  practical, implement the purposes of this Agreement.

         8.4      Notices Any notice or other communication pursuant to this
                  Agreement will be deemed duly made or given: (i) when
                  delivered by hand; (ii) 10 business days after it is mailed,
                  certified or return receipt request, with postage prepaid;
                  (iii) when sent, if sent by telecopy (with receipt confirmed)
                  or (iv) when receipt is signed for when sent by Federal
                  Express, DHL or other express delivery service. Notices will
                  be addressed as follows:

                                      -9-
<PAGE>

          If to West or West/Nottingham to:

                  West Pharmaceutical Services, Inc.
                  101 Gordon Drive
                  Lionville, Pennsylvania 19341
                  Attention:  Division President, Drug Delivery Systems
                  Telecopier: 610 594-3013

                  With a required copy to:

                  West Pharmaceutical Services, Inc.
                  101 Gordon Drive
                  Lionville, Pennsylvania 19341
                  Attention:  General Counsel
                  Telecopier: 610 594-3013

         If to IDDS to:

                  Innovative Drug Delivery Systems, Inc.
                  787 Seventh Avenue
                  New York, NY 10019
                  Attention:  David M. Tanen
                  Telecopier: 212 554-4355

8.5.     Governing Law/Jurisdiction. This Agreement is acknowledged to have been
         made in and shall be construed, governed, interpreted and applied in
         accordance with the federal patent laws and the laws of the
         Commonwealth of Pennsylvania, without giving effect to its conflict of
         laws provisions. The state and federal courts in Pennsylvania shall
         have exclusive jurisdiction over any litigation arising under this
         Agreement.

8.6.     Arbitration Clause. Any controversy or claim arising out of or relating
         to this Agreement or the breach thereof, which remains unsettled
         following diligent efforts by each Party to reach a mutually acceptable
         resolution of such claim or controversy, shall be settled by
         arbitration administered by the American Arbitration Association and
         judgment on the award rendered by the arbitrator(s) may be entered in
         any court having jurisdiction thereof This Section shall not prevent
         any Party from seeking equitable relief

8.7.     Entire Agreement. This Agreement, the License Agreement, and the
         Confidentiality Agreement among the Parties entered into as of August
         25, 2000 constitute the entire Agreement between the parties with
         respect to the subject matter hereof, and supersede all proposals, oral
         or written, purchase orders, confidentiality agreements and all other
         communications between the parties with respect to such subject matter.

                                      -10-
<PAGE>

8.8.     Modifications The terms and conditions of this Agreement may be amended
         only by a written instrument duly executed by the Parties.

8.9.     Headings. The headings and captions preceding the Sections hereof are
         inserted solely for convenience of reference, and will not constitute
         part of this Agreement, nor will they affect its meaning, construction
         or effect.

8.10.    Independent Contractors. It is expressly agreed that West and
         West/Nottingham, on one hand, and IDDS, on the other hand, are
         independent contractors with respect to this Agreement and that the
         relationship between them created by this Agreement shall not
         constitute a partnership, joint venture or agency. No Party hereto
         shall have the authority to make any statements, representations or
         commitments of any kind, or to take any action, which shall be binding
         on any other Party, without the prior consent of the Party to do so.

8.11.    Waiver. The waiver by any Party of any right hereunder or the failure
         to perform or of a breach by any other Party shall not be deemed a
         waiver of any other right hereunder or of any other breach or failure
         by said other Party whether of a similar nature or otherwise.

8.12.    Counterparts. The Agreement may be executed in one or more
         counterparts, each of which shall be deemed an original, but all of
         which together shall constitute one and the same instrument.

IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be the
subject matter hereof, and supersede all proposals, oral or written, purchase
orders, confidentiality agreements and all other communications between the
parties with respect to such subject matter.

                                      -11-
<PAGE>

8.8.     Modifications The terms and conditions of this Agreement may be amended
         only by a written instrument duly executed by the Parties.

8.9.     Headings. The headings and captions preceding the Sections hereof are
         inserted solely for convenience of reference, and will not constitute
         part of this Agreement, nor will they affect its meaning, construction
         or effect.

8.10.    Independent Contractors. It is expressly agreed that West and
         West/Nottingham, on one hand, and IDDS, on the other hand, are
         independent contractors with respect to this Agreement and that the
         relationship between them created by this Agreement shall not
         constitute a partnership, joint venture or agency. No Party hereto
         shall have the authority to make any statements, representations or
         commitments of any kind, or to take any action, which shall be binding
         on any other Party, without the prior consent of the Party to do so.

8.11.    Waiver. The waiver by any Party of any right hereunder or the failure
         to perform or of a breach by any other Party shall not be deemed a
         waiver of any other right hereunder or of any other breach or failure
         by said other Party whether of a similar nature or otherwise.

8.12.    Counterparts. The Agreement may be executed in one or more
         counterparts, each of which shall be deemed an original, but all of
         which together shall constitute one and the same instrument.

         IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be
duly executed by their respective duly authorized officers.

INNOVATIVE DRUG DELIVERY SYSTEMS, INC.

By:      /s/ Mark C. Rogers
    ----------------------------------
         Mark C. Rogers, M.D., Chairman

WEST PHARMACEUTICAL SERVICES, INC.

                                      -11-
<PAGE>

WEST PHARMACEUTICAL SERVICES, INC.

By:      /s/ Donald B. Morel Jr.
    ----------------------------------
         Donald B. Morel Jr.,
         Division President,
         Drug Delivery Systems

WEST PHARMACEUTICAL SERVICES DRUG DELIVERY
& CLINICAL RESEARCH CENTRE LTD.

By:      /s/ Donald B. Morel Jr.
    ----------------------------------
         Donald E. Morel Jr, Chairman

                                      -12-<PAGE>
                                                                    Exhibit 10.7

Certain confidential portions of this Exhibit were omitted by means of blackout
of the text (the "Mark"). This Exhibit has been filed separately with the
Secretary of the Securities and Exchange Commission without the Mark pursuant to
the Company's Application for Order Granting Confidential Treatment pursuant to
Rule 406 under the Securities Act of 1933, as amended.

WEST PHARMACEUTICAL SERVICES LOGO

                       WEST PHARMACEUTICAL SERVICES, [NC.

                         and its wholly owned subsidiary

                   WEST PHARMACEUTICAL SERVICES LAKEWOOD, INC.

                                       and

                     INNOVATIVE DRUG DELIVERY SYSTEMS, INC.

--------------------------------------------------------------------------------
                        CLINICAL MANUFACTURING AGREEMENT

                                (Nasal Morphine)
--------------------------------------------------------------------------------

                            Dated September 22, 2000

<PAGE>

                        CLINICAL MANUFACTURING AGREEMENT

                 THIS IS A CLINICAL MANUFACTURING AGREEMENT (the
"Agreement"), dated as of September 22, 2000 (the "Effective Date"), among West
Pharmaceutical Services, Inc., a Pennsylvania corporation, ("West") with offices
at 101 Gordon Drive, Lionville, PA, 19341, its wholly owned subsidiary West
Pharmaceutical Services Lakewood, Inc., a Delaware corporation with offices at
1200 Paco Way, Lakewood, New Jersey 08701 ("West/Lakewood"), and Innovative Drug
Delivery Systems, Inc., a Delaware corporation, ("IDDS") with offices located at
787 Seventh Avenue, New York, New York 10019.

                                   Background

                 [ILLEGIBLE] directly and through its subsidiaries, including
West Pharmaceutical Services [ILLEGIBLE] Clinical Research Centre Ltd.
("West/Nottingham") is engaged in, [ILLEGIBLE] and development of delivering
pharmaceutical compounds [ILLEGIBLE] drug-delivery technology. West/Nottingham
is the owner of [ILLEGIBLE]. interest in certain issued letters patent and
pending patent applications relating to the use of chitosan for the transmucosal
delivery of pharmaceutical compounds, including the delivery of Morphine via the
nasal mucosa. West, West/Nottingham and IDDS have entered into a License
Agreement, dated as of August 25, 2000 (the "License Agreement"), under which
West/Nottingham has granted IDDS an exclusive worldwide license to make, have
made, use, import, have imported, sell and have sold products including Morphine
covered by such patents for the treatment of pain in [ILLEGIBLE].

                 [ILLEGIBLE] West/Nottingham have completed pre-clinical
development work for the [ILLEGIBLE] of a product for administering Morphine via
the nasal mucosa. IDDS desires that West and West/Lakewood (West and
West/Lakewood are sometimes collectively referred to herein as the "West Group")
manufacture the product in quantities sufficient for IDDS's clinical trials, and
the West Group agrees to manufacture such clinical supplies, all on the terms
and conditions set forth herein.

                                    Agreement

         Accordingly, intending to be legally bound, the Parties agree as
follows:

I.       Definitions. All capitalized terms used but not defined herein shall
         have the same meaning ascribed thereto in the License Agreement. Terms
         defined in this Section 1 and parenthetically elsewhere in this
         Agreement will throughout this Agreement have the meanings here or
         there provided. Defined terms may be used in the singular or in the
         plural, as sense shall require.

         1.1.     "Clinical Product" means the product containing Morphine
                  combined with chitosan or a chitosan derivative or salt for
                  administration to humans and animals via the nasal mucosa for
                  use in conducting clinical trials in support of obtaining
                  approval to market Licensed Products including Morphine.

<PAGE>

          1.2.     "Product Specification" means:

                   1.2.1.   with respect to the unit dose nasal spray Clinical
                            Product, the specification set forth in "Schedule A"
                            hereto; and

                   1.2.2.   with respect to the multi-dose nasal spray Clinical
                            Product, the specification to be developed by West
                            in cooperation with IDDS.

2.       Agreement to Manufacture, Package, Purchase and Sell. The West Group
         agrees to manufacture, package and sell to IDDS, and IDDS agrees to
         purchase from the West Group, the Clinical Product.

3.       Requirements Contract. IDDS agrees to purchase from the West Group one
         hundred percent (100%) of IDDS's requirements for conducting all of its
         clinical trials for the Clinical Product and all other activities
         necessity or appropriate to obtain Regulatory Agency approval in the
         Major Market Countries for the marketing of the Clinical Product in the
         Field of Use. IDDS shall be excused from the requirements of this
         Section 3 if and to the extent that:

         3.1.     IDDS is required by law or a Regulatory Agency to use Clinical
                  Product manufactured by a third Person in support of the
                  development and commercialization of a Licensed Product to be
                  manufactured by a third Person; or

         3.2.     the West Group is unable to supply 100% of IDDS's
                  requirements for Clinical Product.

4.       Material Supply. The West Group will supply the materials and
         components necessary for the manufacture and packaging of the Clinical
         Product, as set forth and subject to the limitations of "Schedule B"
         hereto.

5.       Price. The price for the Clinical Product to be manufactured and sold
         hereunder is set forth in Schedule B hereto.

6.       Taxes. All sales, use, gross income or other taxes, and import and
         export duties levied by any governmental body, except U.S. federal and
         state and foreign income taxes, relating to the Clinical Product
         manufactured hereunder shall be paid by IDDS. If the West Group is
         required to pay any such taxes or duties IDDS shall reimburse the West
         Group within 30 days of receipt of West's or West/Lakewood's invoice
         therefor.

7.       Purchase Orders and Forecasts: DEA Requirements.

         7.1.     Firm orders for Clinical Product shall be placed by IDDS in
                  writing or orally, provided that all oral orders are confirmed
                  in writing promptly thereafter. All orders shall specify
                  quantities ordered, delivery request date, shipping
                  instructions and such other information as the West Group may
                  reasonably request in order to allow the West Group to fill
                  the order. Lead times on orders will be established by the
                  West Group in writing.

                                       2
<PAGE>

          7.2.     To assure timely delivery of Clinical Product, the West Group
                   and IDDS shall cooperate fully in estimating and scheduling
                   orders of Clinical Product to be placed by IDDS. Prior to the
                   end of each calendar year during the term of this Agreement,
                   IDDS shall provide to the West Group IDDS's estimate of its
                   quarterly requirements of Clinical Product for the next
                   calendar year. Clinical Product shall be delivered only in
                   response to firm IDDS purchase orders indicating exact
                   quantities ordered and requested delivery dates.

         7.3.     IDDS shall, by March 1 of each calendar year, use its best
                  efforts to provide the West Group with all information on
                  IDDS's requirements for Morphine (and any other drug or other
                  substance listed as a "controlled substance" under Section 811
                  of the Controlled Substances Act) for the subsequent calendar
                  year (e.g., by March 1, 2001 for calendar year 2002) necessary
                  for the West Group to file the appropriate regulatory
                  applications with the U.S. Drug Enforcement Agency.

8.       Order Cancellations. Orders are subject to cancellation, change,
         reduction in amount or suspension of deliveries only by mutual
         agreement of the parties or upon 90 days prior written notice. IDDS may
         cancel any order that the West Group fails to deliver in accordance
         with the terms of this Agreement.

9.       Delivery and Payment Terms. Delivery and payments terms are as set
         forth in Schedule B hereto. If delivery is deferred, the goods may be
         stored as provided in Section 11 hereof

10.      Delivery: Risk of Loss. All sales are F.O.B. point of manufacture.
         Shipping dates are estimates only, which are not guaranteed and are
         based upon prompt receipt from IDDS of all necessary shipping and other
         information. The West Group reserves the right to make delivery in
         installments, which shall be separately invoiced and paid for by IDDS
         when due per invoice, without regard to subsequent deliveries.

11.      Storage. If Clinical Product is not shipped within 30 days after
         notification has been made to IDDS that they are ready for shipping for
         any reason beyond the West Group's control, including IDDS's failure to
         give shipping instructions, the West Group may store the Clinical
         Product at IDDS's risk and expense in a warehouse or upon the West
         Group's premises, and IDDS will pay all handling, transportation and
         storage costs at the prevailing commercial rates promptly following the
         West Group's submission of invoices for such costs.

                                       3
<PAGE>

 12.     Insurance. Until payment in full of the purchase price, IDDS shall
         maintain insurance covering all Clinical Product sold by the West Group
         to IDDS in such amounts and against such risks as is customary by
         companies engaged in the same or similar business and similarly
         located, and shall, upon the West Group's request, furnish evidence of
         such insurance reasonably satisfactory to the West Group.

13.      Inspection. IDDS will examine each shipment upon its arrival at the
         specified destination and will promptly notify the West Group in
         writing of any shortage, loss or damage apparent under reasonable
         visual examination. Failure by IDDS to notify the West Group within 15
         days of such examination will constitute a waiver of all claims for
         such shortage, loss or damage. Claims for loss or damage to Clinical
         Product in transit by common carrier must be made to the carrier and
         not the West Group-

14.      Clinical Product Warranties: Remedies and Limitations of Liability:
         Indemnification.

         14.1.    Representations and Warranties. Each of West and West/Lakewood
                  represents and warrants to IDDS that:

                  14.1.1.  at the time of delivery, all Clinical Product will
                           conform to the applicable Product Specification; and

                  14.1.2.  the Clinical Product will be manufactured and
                           packaged in accordance with all applicable laws,
                           rules and regulations.

                  THE FOREGOING CONSTITUTE THE SOLE WARRANTIES AND ARE IN LIEU
                  OF ALL OTHER EXPRESSED AND IMPLIED WARRANTIES, INCLUDING
                  WITHOUT LIMITATION THE IMPLIED WARRANTIES OF MERCHANTABILITY
                  AND FITNESS FOR A PARTICULAR PURPOSE. The foregoing warranties
                  run only to IDDS. There are no oral promises, representations
                  or warranties collateral to or affecting this Agreement.

         14.2.    Limitation of Remedies. If any of the Clinical Product sold
                  hereunder shall be proved to be nonconforming with the
                  specifications, the West Group will replace such nonconforming
                  Clinical Product, or at the West Group's option, provide IDDS
                  with a credit for the invoice price, plus IDDS's shipping
                  costs, with respect to the Clinical Product in question.
                  Clinical Product claimed to be nonconforming shall not be
                  returned without the West Group's prior written approval. The
                  West Group may request that IDDS destroy nonconforming
                  Clinical Product at the West Group's expense, such destruction
                  to be carried out in compliance with applicable law and
                  certified in writing by an appropriate officer of IDDS. THE
                  PROVISIONS OF THIS SECTION 14.2 SETS FORTH IDDS'S EXCLUSIVE
                  REMEDY, AND WEST'S AND WEST/LAKEWOOD'S SOLE LIABILITY, ON ANY

                                       4
<PAGE>

         CLAIM, WHETHER IN TORT, CONTRACT, OR OTHERWISE RELATING TO OR ARISING
         OUT OF DEFECTIVE OR NON CONFORMING CLINICAL PRODUCT AND IN NO EVENT
         SHALL WEST OR WEST/LAKEWOOD BE LIABLE FOR INDEMNIFICATION OF IDDS ON
         ACCOUNT OF ANY CLAIM ASSERTED AGAINST IDDS OR FOR ANY OTHER FURTHER
         DAMAGE, COST, EXPENSE OR LIABILITY OF ANY KIND WHATSOEVER, WHETHER
         DIRECT OR INDIRECT, INCLUDING WITHOUT LIMITATION INCIDENTAL OR
         CONSEQUENTIAL DAMAGES TO IDDS OR ITS AFFILIATES ARISING FROM OR RELATED
         TO ANY DEFECT IN MATERIALS OR WORKMANSHIP, EXCEPT TO THE EXTENT THAT
         SUCH DAMAGE, COST, EXPENSE OR LIABILITY ARISES FROM THE GROSS
         NEGLIGENCE OR WILLFUL MISCONDUCT OF WEST OR WEST/LAKEWOOD.

14.3.    Indemnification.

         14.3.1.  Indemnification by the West Group. Each of West and
                  West/Lakewood shall indemnify, defend and hold IDDS, its
                  directors, trustees, officers, employees and Affiliates
                  harmless from and against any and all claim, loss, damage,
                  liability, injury, cost or expense, including without
                  limitation expenses of litigation and reasonable attorneys'
                  fees, (collectively "Damages") arising out of or in connection
                  with any claims made or suits brought against IDDS to the
                  extent arising from the gross negligence or willful misconduct
                  of West or West/Lakewood, or their Affiliates, subcontractors
                  or agents; provided however that West and West/Lakewood shall
                  not be obligated to provide indemnification hereunder to the
                  extent that any Damages result from the gross negligence or
                  willful misconduct of IDDS.

         14.3.2.  Indemnification by IDDS. IDDS shall indemnify, defend and hold
                  West and West/Lakewood and their directors, trustees,
                  officers, employees and Affiliates harmless from and against
                  any and all Damages (including without limitation the death of
                  or injury to any individual or out of any damage to property)
                  arising out of or in connection with any claims made or suits
                  brought against West or West/Lakewood to the extent arising
                  from the gross negligence or willful misconduct of IDDS, its
                  Affiliates, subcontractors and agents; provided however that
                  IDDS shall not be obligated to provide indemnification
                  hereunder to the extent that any Damages result from the gross
                  negligence or willful misconduct of West or West/Lakewood.

                                       5
<PAGE>

15.      Term and Termination.

         15.1.    Term and Expiration. This Agreement shall become effective as
                  of the Effective Date and, unless terminated earlier pursuant
                  to this Section 15, shall remain in effect for a period of two
                  (2) years, or if earlier until the last to occur Launch Date
                  after the Clinical Product has been Launched in all Major
                  Market Countries.

         15.2.    Termination. This Agreement may be terminated as follows:

                  15.2.1.  By mutual consent of the parties at any time.

                  15.2.2.  By either West or IDDS upon written notice to the
                           other:

                  (a)      in the event of a default by the other party in the
                           due observance or performance of any covenant,
                           condition or limitation of this Agreement or the
                           License Agreement, but only if the defaulting party
                           will not have remedied its default within 30 days (or
                           five days if the default is the failure to pay money
                           when due) after receipt of written notice of such
                           default from the non-defaulting party; or

                  (b)      if the other party is adjudicated a bankrupt, if
                           insolvency, bankruptcy, reorganization, debt
                           adjustment or liquidation proceedings are instituted
                           against such party and not dismissed within 60 days
                           after the institution thereof, if a receiver or
                           trustee is appointed for such party and its assets,
                           or if such party makes a general assignment for the
                           benefit of its creditors.

                  15.2.3.  Survival. Notwithstanding the termination of this
                           Agreement, all rights and obligations of the parties
                           that by their terms survive termination shall remain
                           unaffected until the complete satisfaction or
                           expiration thereof

16.      Miscellaneous Provisions.

         16.1.    Force Majeure. No party hereto shall be held liable or
                  responsible to any other party nor be deemed to have defaulted
                  under or breached this Agreement for failure or delay in
                  fulfilling or performing any term of the Agreement when such
                  failure or delay is caused by or results from causes beyond
                  the reasonable control of the party failing to perform or
                  delayed in performing including, but not limited to, fire,
                  floods, embargoes, war, acts of war (whether war be declared
                  or not), insurrections, riots, civil commotions, strikes,
                  lockouts or other labor disturbances, acts of God or acts,
                  omissions or delays in acting by any governmental authority or
                  the other party.

                                       6
<PAGE>

 16.2.    Assignment. This Agreement may not be assigned or otherwise
          transferred by any party without the consent of the other parties;
          provided, however, that either party may, without such consent, assign
          this Agreement and its rights and obligations hereunder to its
          Affiliates or in connection with the transfer or sale of all or
          substantially all of its business, or in the event of its merger or
          consolidation or change in control or similar transaction. Any
          purported assignment in violation of the preceding sentence shall be
          void. Any permitted assignee shall assume all obligations of its
          assignor under this Agreement.

 16.3.    Severability. In the event any one or more of the provisions contained
          in this Agreement should be held invalid, illegal or unenforceable in
          any respect, the validity, legality and enforceability of the
          remaining provisions contained herein shall not in any way be affected
          or impaired thereby, unless the absence of the invalidated
          provision(s) adversely affect the substantive rights of the parties.
          The parties shall in such an instance use reasonable efforts to
          replace the invalid, illegal or unenforceable provision(s) with valid,
          legal and enforceable provision(s) which, insofar as practical,
          implement the purposes of this Agreement.

 16.4.    Notices Any notice or other communication pursuant to this Agreement
          will be deemed duly made or given: (i) when delivered by hand; (ii) 10
          business days after it is mailed, certified or return receipt request,
          with postage prepaid; (iii) when sent, if sent by telecopy (with
          receipt confirmed) or (iv) when receipt is signed for when sent by
          Federal Express, DHL or other express delivery service. Notices will
          be addressed as follows:

          If to the West Group to:

          West Pharmaceutical Services, Inc.
          101 Gordon Drive
          Lionville, Pennsylvania 19341
          Attention:  Division President, Drug Delivery Systems
          Telecopier: 610 594-3013

          With a required copy to:

          West Pharmaceutical Services, Inc.
          101 Gordon Drive
          Lionville, Pennsylvania 19341
          Attention:  General Counsel
          Telecopier: 610 594-3013

                                       7
<PAGE>

         If to IDDS to:

         Innovative Drug Delivery Systems, Inc.
         787 Seventh Avenue
         New York, NY 10019
         Attention:  David M. Tanen
         Telecopier: 212 554-4355

17.5.    Governing Law/Jurisdiction. This Agreement is acknowledged to have been
         made in and shall be construed, governed, interpreted and applied in
         accordance with the federal patent laws and the laws of the
         Commonwealth of Pennsylvania, without giving effect to its conflict of
         laws provisions. The state and federal courts in Pennsylvania shall
         have exclusive jurisdiction over any litigation arising under this
         Agreement.

17.6.    Arbitration Clause. Any controversy or claim arising out of or relating
         to this Agreement or the breach thereof, which remains unsettled
         following diligent efforts by each party to reach a mutually acceptable
         resolution of such claim or controversy, shall be settled by
         arbitration administered by the American Arbitration Association and
         judgment on the award rendered by the arbitrator(s) may be entered in
         any court having jurisdiction thereof. This Section shall not prevent
         any party from seeking equitable relief

17.7.    Entire Agreement. This Agreement, the Schedules attached hereto and
         incorporated herein by reference, and the Confidentiality Agreement
         among the Parties entered into as of the Effective Date constitute the
         entire Agreement between the parties with respect to the subject matter
         hereof, and supersede all proposals, oral or written, purchase orders,
         confidentiality agreements and all other communications between the
         parties with respect to such subject matter.

17.8.    Modifications. The terms and conditions of this Agreement may be
         amended only by a written instrument duly executed by the Parties.

17.9.    Headings. The headings and captions preceding the Sections hereof are
         inserted solely for convenience of reference, and will not constitute
         part of this Agreement, nor will they affect its meaning, construction
         or effect.

17.10.   Independent Contractors. It is expressly agreed that West/Lakewood and
         IDDS are independent contractors with respect to this Agreement and
         that the relationship between them created by this Agreement shall not
         constitute a partnership, joint venture or agency. No party hereto
         shall have the authority to make any statements, representations or
         commitments of any kind, or to take any action, which shall be binding
         on any other party, without the prior consent of the party to do so.

                                       8
<PAGE>

17.11.   Waiver. The waiver by any party of any right hereunder or the failure t
         perform or of a breach by any other party shall not be deemed a waiver
         o any other right hereunder or of any other breach or failure by said
         other party whether of a similar nature or otherwise.

17.12.   Counterparts. The Agreement may be executed in one or more
         counterparts, each of which shall be deemed an original, but all of
         which together shall constitute one and the same instrument.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed by their respective duly authorized officers.

INNOVATIVE DRUG DELIVERY SYSTEMS, INC.

By: /s/ Mark C. Rogers
   ---------------------------------------------
   Mark C. Rogers, M.D., Chairman

WEST PHARMACEUTICAL SERVICES, INC.

By:  /s/ Donald E. Morel Jr.
   ---------------------------------------------
   Donald E. Morel Jr., Division President, Drug Delivery Systems

WEST PHARMACEUTICAL SERVICES LAKEWOOD, INC.

By:  /s/ Robert S. Hargesheimer
   ---------------------------------------------
   Robert S. Hargesheimer, Vice President

                                       9

<PAGE>

                                   SCHEDULE B

                       Terms of supply and price breakout

                                       2
<PAGE>

                CLINICAL MANUFACTURING AGREEMENT (NASAL MORPHINE)
                                   SCHEDULE B

                         Terms of Manufacture and Supply

1.   Unit dose devices will be used through Phase II trials.

2.   Multiple dose devices will be used in Phase III trials.

3.   Pending execution of a commercial supply agreement all clinical supplies
     will be produced in a Class 10,000 clinical manufacturing facility.

4.   West will purchase all raw materials, formulate, fill, bulk package, bulk
     label, and perform necessary release and stability testing on the clinical
     supplies under GMP conditions.

5.   Prices do not include the cost of clinical or blind labeling of the product
     or other special handling.

6.   All orders will be for the minimum batch size or whole multiples thereof,
     which will be shipped net of any units required to be retained for QA
     and/or stability testing.

7.   Payments terms are as follows:

                  40% with order
                  30% upon notification of completion of manufacturing
                  30% upon notification of completion of release testing

                  Other than payments required with each order, amounts are due
                  upon invoicing.

8.   Product will be shipped at IDDS direction and cost

<PAGE>

CLINICAL MANUFACTURING AGREEMENT (NASAL MORPHINE)
SCHEDULE B
Nasal Morphine Clinical Supply Manufacturing

--------------------------------------------------------------------------------
Unit Dose Devices

Minimum batch size = *** units
Maximum batch size = *** units

Batch set-up cost = $***
Unit cost = $*** per unit

Above costs apply to *** formulations and placebo.

The device will be a Pfeiffer standard unit dose liquid nasal device delivering
100 microliters per dose.

--------------------------------------------------------------------------------

Multi-Dose Devices

Minimum batch size = *** units

Maximum batch size *** units

The manufacturing costs per batch are broken out as follows:

Formula Strength           Batch set-up         UnIt Cost
(mg/ml morphine)              Cost                 Cost
----------------           ------------         ---------
    ***                       $***               $***
    ***                       $***               $***
    ***                       $***               $***
    ***                       $***               $***

The device system will consist of a standard multi-dose liquid nasal device
(such as a Valois VP-7) delivering 100 microliters of nasal morphine solution
per dose and a 15 ml amber glass vial filled with 12 ml of morphine solution.

--------------------------------------------------------------------------------

Stability Testing

Cost per batch tested = $***

Stability tests follow ICH guidelines as follows:

 - Stability of batch Including shelf life determination
 - Storage @ 25C/60%RH (inverted & upright), Testing @ 1,3,6,9,12,18,24 & 36
   months
 - Storage @ 40C/175%RH (Inverted & upright), Testing @ 0,1,3,6 & 9 months
 - Test by Method I, Method II, USP [791], USP [788], USP [755], Torque & Visual
   inspection

Note that the following unit volumes are necessary in order to perform the above
described stability testing:

   Unit dose - *** units/batch tested
   Multi-dose - *** units/batch tested
--------------------------------------------------------------------------------

*** Represents material which has been omitted pursuant to an Application for
    Order Granting Confidential Treatment and filed separately with the
    Commission.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00033-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00033-of-00352.parquet"}]]