Pfizer Inc has agreed to sell its oral contraceptives Estrostep and Loestrin and its hormone replacement therapy femhrt to Galen Holdings PLC of Britain for $359 million in cash.
Pfizer acquired the products through its merger with Warner-Lambert Co. in June 2000. Pfizer announced earlier this year that had it decided to divest these products, which had global sales of $211 million in 2002. Under terms of the deal, Pfizer will receive $359 million in cash. In addition, Pfizer will be entitled to receive an additional $125 million in residual payments based on Estrostep's and femhrt's retention of market exclusivity.
Galen, which specializes in women's health, urology and analgesics, markets the oral contraceptive Ovcon, the hormone replacement therapy Estrace and the acne medication Doryx. The company is based in Craigavon, Northern Ireland, and established a presence in the United States through the acquisition of Warner Chilcott in 2000.
Estrostep was introduced in 1997 and is the only graduated estrogen oral contraceptive. It also is indicated for the treatment of moderate acne. Loestrin, launched in 1973, is a low-dose oral contraceptive.
Femhrt, a combined-continuous hormone replacement therapy that combines low-dose estrogen and a progestin, is indicated for use in treating the symptoms of menopause and for the prevention of osteoporosis. It was launched in 2000.
The transaction, which is subject to Galen shareholder approval as well as regulatory approval, including Federal Trade Commission approval of the sale of femhrt in connection with its review of Pfizer's acquisition of Pharmacia, is expected to be completed in March or April.