Hi-Tech Pharmacal Co., Inc., a specialty pharmaceuticals company, announced it has acquired the marketing and distribution rights for TussiCaps (hydrocodone polistirex and chlorpheniramine polistirex) extended-release capsules from Mallinckrodt. The product is indicated for the treatment of cough and upper respiratory symptoms associated with allergy or a cold in adults and children 6 years of age and older. The product is available in 10mg/8mg and 5mg/4mg formulations.
TussiCaps is the only FDA approved extended-release prescription cough/cold capsule product on the market. Reuben Seltzer, vice chairman of Hi-Tech Pharmacal said, “We believe TussiCaps is an excellent fit for ECR Pharmaceuticals based on our focus on primary care physicians in the cough/cold area. The 12-hour release and capsule dosage form provide accurate and convenient dosing for adult and paediatric patients.”
The Company paid $ 11.6 million in cash, and depending on the competitive landscape and sales performance, may make payments of up to $ 12.5 million more over the next four years. The purchase price includes certain intellectual property and inventory on hand. The brand had sales of $ 9.4 million for the 12-month period ended June 2011 according to IMS. TussiCaps is covered by a patent which will not expire until May 2025.
David Seltzer, Hi-Tech's president and CEO said, “The Company will continue to leverage our strong balance sheet to expand all three business segments in which we compete--prescription generics, branded prescription products and OTC brands.”
ECR Pharmaceuticals will start training sales representatives immediately and will begin to promote TussiCaps in September 2011.
TussiCaps will continue to be manufactured by Mallinckrodt, ensuring that physicians and patients will continue to receive the quality product they have come to expect.
Hi-Tech is a specialty pharmaceutical company developing, manufacturing and marketing generic and branded prescription and OTC products. The Company specializes in difficult to manufacture liquid and semi-solid dosage forms and produces a range of sterile ophthalmic, optic and inhalation products.