First Horizon Pharmaceutical Corporation announced that it has finalized its previously announced acquisition of worldwide rights in connection with the type 2 diabetes prescription medication Fortamet (metformin hydrochloride) and the cholesterol medication Altoprev (lovastatin) from Andrx Corporation. The company has also entered into a long-term manufacturing and supply agreement with Andrx.

Fortamet is a patented, once-a-day treatment for type 2 diabetes, and competes in the approximately $6 billion oral diabetes market (based on prescriptions according to IMS Health's National Prescription Audit Plus data). Altoprev is a patented once-a-day treatment for cholesterol, and competes in the approximately $15 billion statin market (based on prescriptions according to IMS Health's National Prescription Audit Plus data).

The company has paid Andrx $50 million and may pay up to $35 million in additional purchase price when Andrx achieves certain defined manufacturing service levels and delivers certain quantity of Altoprev. Andrx is also entitled to royalties on net sales, as defined, of 8 per cent on Fortamet and 15 per cent on Altoprev.

Patrick Fourteau, president and CEO of First Horizon Pharmaceutical commented, "We are very pleased to consummate this transaction with Andrx. We are excited about the growth potential of Fortamet and Altoprev. Both products participate in well established therapeutic classes and both complement our existing cardiovascular product offerings and fit well within our sales and marketing approach."