Savient Pharmaceuticals Inc, an emerging specialty pharmaceuticals company focused on developing, manufacturing and marketing novel therapeutic products for unmet medical needs has agreed to sell its injectable testosterone product for male hypogonadism, Delatestryl to Indevus Pharmaceuticals Inc.
The closing of the transaction, which has been approved by the boards of directors of both companies, is subject to certain conditions. Savient expects that the transaction will close early in 2006.
Under the terms of the agreement, Indevus will pay Savient an initial payment of $5 million and will also pay to Savient a portion of the net sales of the product for the first three years following closing based on an escalating scale. If the sales of Delatestryl remain at current levels for the three years following the Closing of the transaction, these additional net sales payments could equal approximately $2 million. Additionally, Indevus will purchase from Savient in three instalments equalling approximately $1.9 million its inventory of finished product. Indevus will also assume certain future obligations under the agreement with the third party contract manufacturer for the product, states a company release.
"The sale of Delatestryl to Indevus represents another step forward in our corporate strategy to become a world-class specialty pharmaceutical company with a focus in rheumatolgy" said Christopher Clement, president and chief executive officer of Savient.
"Its sale to Indevus affords us the opportunity to better focus our efforts on our Rheumatolgy product Puricase for severe gout, which will start its phase 3 clinical trials in early 2006," added Clement.
Savient Pharmaceuticals Inc. is a specialty pharmaceutical company that develops, manufactures and markets novel therapeutic products to address unmet medical needs.