Faulding Pharmaceutical Co, a subsidiary of Mayne Group Limited, has acquired the rights to the generic anesthetic injectable, Propofol -- including patent rights -- and the rights to anti-fungal injectable, Fluconazole, from Baxter Healthcare Corporation. These products are both currently under development and have significant market potential in the USA.

Baxter acquired the rights to these pipeline products through its acquisition of Wyeth's ESI Lederle division. The USA Federal Trade Commission requested that Baxter divest the Propofol assets as a condition of approving the purchase of ESI.

Faulding Pharmaceutical Co. President for the Americas, Stuart Hinchen, said that the acquisition was in line with the company's U.S. business's strategic focus on injectable hospital pharmaceuticals.

"Both these products provide an excellent opportunity to enhance our presence and product offering in the U.S. hospital market," Hinchen said. "The acquisition of Propofol positions Faulding Pharmaceutical Co. to become the third competitor in the patent-protected U.S. market for this product - a market valued at U.S. $500 million, estimated to be growing at 19% per annum.

"Fluconazole has a U.S. market value of U.S. $175 million, with an estimated growth rate of 10% per annum," said Hinchen.

Payment to Baxter for these products is structured on milestone achievements in relation to regulatory filing and approval, as well as commercialization. Commercial sales are anticipated to commence in 2004 for Fluconazole and in 2005 for Propofol.

The filing of the Propofol ANDA, which is under review by the FDA, resulted in a patent suit by the product innovator, Astra Zeneca. Faulding Pharmaceutical Co. is confident of successfully defending the patent suit, however, the cost arising from this action has been factored into the consideration for these assets. expects to complete in January 2003.