sed regular expression

Hi , I need to remove pipe character from a |^ delimeted file.
Something like

  |^tran|sformers||^|revenge |of fallen|^  

to

|^transformers|^revenge of fallen|^...

Cold anybody please help to build the regular expression using sed .
many thanks.

 $ sed 's/|\([^^]\)/\1/g' tmp.dat
|^transformers|^revenge of fallen|^

Replace a pipe followed by any non-caret character, with the non-caret charater.