Furiex Pharmaceuticals confirmed Wednesday that its drug development partner Takeda Pharmaceuticals has reached a milestone that will trigger a $10 million payment to the Morrisville company.

Takeda's Marketing Authorization Application was accepted by the European Medicines Agency for alogliptin, a treatment for type 2 diabetes.

Furiex receives royalty payments from Takeda for the sale of the drug in Japan and will also receive royalties on European sales, if it is approved on the continent.

Furiex shares fell 23 percent in a single day last month after news came out that alogliptin failed to win U.S. regulatory approval.

Takeda plans to supply additional data requested by the FDA and is requesting a meeting with regulators to determine additional steps it needs to take to address outstanding issues.