Drug Royalty USA Inc, a wholly-owned subsidiary of Drug Royalty Corporation Inc, has acquired a royalty interest in the North American sales of Abreva, the first product for the treatment of cold sores that has been approved by the U.S. Food and Drug Administration and is available to consumers without a prescription. The acquisition cost of approximately US$24 million will be financed out of Drug Royalty's existing working capital.
"This acquisition further diversifies our portfolio of royalty interests," said Behzad Khosrowshahi, President and CEO of Drug Royalty. "Abreva is the only FDA approved over-the-counter drug for the treatment of HSV-1 induced cold sores and is designed to treat HSV-1 induced cold sores in the blister or pre-blister stage."
Under the terms of this agreement, Drug Royalty USA, Inc. will acquire a royalty interest in the North American sales of Abreva from Avanir Pharmaceuticals for up to 11 years.
Abreva was developed by Avanir Pharmaceuticals and launched in the United States in October 2000 by GlaxoSmithKline plc. Since its launch Abreva has become the best selling over-the-counter treatment for HSV-1 induced cold sores in the United States.