Æterna Zentaris Inc., a global biopharmaceutical company focused on endocrine therapy and oncology, and Paladin Labs Inc. (PLB), a leading Canadian specialty pharmaceutical company, announced that they have entered into a definitive purchase and sale agreement with respect to all rights related to the manufacture, production, distribution, marketing, sale and/or use of miltefosine for an aggregate purchase price of Cdn$9.125 million payable in cash, subject to certain post-closing purchase price adjustments.
Miltefosine, sold under the brand name Impavido throughout the world, recorded revenues of Euro 2.5 million in 2007. Completion of the transactions contemplated by the purchase agreement is subject to customary closing conditions, including the parties having received certain third-party consents and approvals, an Æterna Zentaris press release said.
Miltefosine is a phosphocholine analogue currently marketed under the brand name Impavido, the first oral drug for the treatment of visceral and cutaneous leishmaniasis. Impavido has been proven to be highly effective and less toxic than current therapies. Other current available treatments are liposomal amphotericin (Ambisome) and Paromomycin.
David J. Mazzo, Ph.D., president and CEO of Æterna Zentaris commented, "Last fall, we put forth our new focused business strategy which included identifying non-core assets and actively seeking to divest them as a way to infuse non-dilutive funds into the Company. We are very pleased to have entered into an agreement for the sale of the compound, miltefosine, and look forward to consummating the deal in the near future."
"This transaction marks the first time that Paladin has acquired international rights to a patented, medically important product", said Jonathan Ross Goodman, President and CEO of Paladin Labs. This transaction is expected to be immediately accretive to earnings and it fits within our broader strategy to grow Paladin's revenues beyond the Canadian border."
Leishmaniasis is an infectious disease transmitted by the bite of the phlebotomine sandfly. The cutaneous form of the disease normally produces skin ulcers on the exposed parts of the body such as the face, arms and legs. The visceral form - also known as kala azar - is characterized by irregular bouts of fever, substantial weight loss, swelling of the spleen and liver, and anaemia (occasionally serious).
According to the World Health Organization, the disease is endemic in 88 countries with nearly 350 million people at risk. If untreated, visceral leishmaniasis can result in death within 6 months to 2 years. There are more than one million new cases per year of cutaneous leishmaniasis and an estimated prevalence of 12 million people already infected.