Cambridge Laboratories in Ireland will benefit from the acquisition of Prestwick Pharmaceuticals and related license rights for $100 million by pharmaceutical company Biovail.
US-based Prestwick holds the Canadian and US licensing rights to xenazine tetrabenazine tablets – of which Cambridge is the worldwide license holder.
The US Food and Drug Administration recently approved xenazine for the treatment of chorea associated with Huntington’s, a devastating neurodegenerative disease.
In line with an agreement between Prestwick and Ovation Pharmaceuticals, Biovail will supply xenazine to Ovation for a variable percentage of the product’s annual net sales.
Up to $125 million, Biovail’s supply price will be 72% of net sales, 65% beyond $125 million. At both tiers, Biovail will pay 50% of net sales to Cambridge. The launch is expected later this year.
Beyond xenazine, the acquisition also provides Biovail with other early-stage products, including treatment for Parkinson’s disease and schizophrenia.
Biovail’s chief executive officer, Bill Wells, said: “The transaction meets all of our acquisition criteria, and represents Biovail’s first commercial exposure to speciality markets in central nervous system (CNS) disorders. The acquisition is another important step in the implementation of our new strategic focus.”
Copyright PA Business 2008