Barr Laboratories Inc has completed its agreement to acquire the U. S. rights to four products currently marketed by Wyeth and a license to complete the development of and market a new oral contraceptive. A letter of intent related to the agreements completed was signed and announced in December 2002.
Barr agreed to pay Wyeth at the closing approximately $22.6 million for the U.S. rights to Diamox Sequels (for glaucoma), Zebeta (for hypertension), Ziac (for hypertension) and Aygestin (amenorrhea), four branded products currently marketed by Wyeth. At closing, Barr will also pay Wyeth approximately $4 million to acquire a license from Wyeth, together with a sublicense that originated from Aventis S.A., to develop and market in the U.S. oral contraceptive products using Trimegestone (TMG). Barr also agreed to make future payments after certain sales milestones are achieved.
Wyeth retains the ex-U.S. rights to TMG as an oral contraceptive and retains global rights to TMG for all other non-transdermal indications, including hormone therapy (HT).
"This transaction offers several benefits for Barr's long-term growth," said Bruce L. Downey, Barr's Chairman and Chief Executive Officer. "First, Barr will immediately add revenue and earnings from four currently marketed proprietary products. Second, we will add the TMG oral contraceptive product to our proprietary pipeline of female healthcare products currently in development. Finally, the structure of our deals allows Barr to add to current earnings while simultaneously investing in R&D that we expect may ultimately result in the introduction of a new progestin in the oral contraceptive marketplace."
Barr's pipeline of proprietary female healthcare products includes the Seasonale extended cycle oral contraceptive, that is currently pending before the U.S. Food and Drug Administration (FDA); the DP3 extended cycle oral contraceptive, currently in Phase III clinical studies; and various line extensions for Cenestin (Synthetic Conjugated Estrogens, A), an estrogen-only conjugated estrogen product.
Wyeth and Barr Laboratories have agreed to terminate the litigation relating to the anti-trust suit filed in September 2000 by Duramed Pharmaceuticals, Inc against Wyeth-Ayerst Laboratories Inc. Barr Laboratories Inc. and Duramed merged in October 2001.