NaPro BioTherapeutics, Inc. announced that it has completed the sale of its worldwide generic injectable paclitaxel business to Mayne Pharma for $71.7 million in cash minus an inventory adjustment of $4.6 million to reflect NaPro's actual inventory as of the date of closing. NaPro first announced the proposed sale of the paclitaxel business on August 26, 2003. Stockholders approved the sale at a special meeting of stockholders.
NaPro retired $21.9 million in debt (including accrued interest) and payables arising from its development relationship with Abbott Laboratories, and received $3.2 million in connection with the termination of its marketing agreements with Mayne Pharma and Abbott. NaPro expects that its cash balance at yearend will be approximately $50 million.
"The net proceeds from this sale, to our long standing partner Mayne Pharma, will provide us with additional capital to advance the development of our proprietary oncology and hereditary disease therapeutic programmes," commented Leonard P Shaykin, chairman and CEO. "We anticipate bringing at least two of our proprietary drug candidates into the clinic in the coming year."
The closing of the paclitaxel sale marks the termination of NaPro's development agreements with Mayne Pharma. On September 30, 2003, Mayne Pharma announced that it had acquired Abbott Laboratories' marketing and distribution rights for paclitaxel in North America and along with it, Abbott Laboratories' holdings of two million shares of NaPro's common stock.
NaPro BioTherapeutics, Inc. is a life science company focused on the development of targeted therapies for the treatment of cancer and hereditary disease.