Ovation Pharmaceuticals, Inc. has acquired from Prestwick Pharmaceuticals the exclusive license in the United States to commercialize Xenazine (tetrabenazine), an orphan drug recently approved by the US Food and Drug Administration (FDA) for the treatment of chorea associated with Huntington's Disease (HD). Financial terms of the deal were not disclosed. Subsequently, Biovail Corporation, Canada's largest publicly traded pharmaceutical company, acquired Prestwick.

Under the terms of the agreement, Biovail and Ovation will jointly develop additional follow-on indications for Xenazine and related products in the US in conjunction with Cambridge Laboratories Limited, the worldwide license holder of the drug. Xenazine is the first and only FDA-approved treatment for any HD-related disorders. Ovation expects to launch the product in the US by the end of this year.

"Obtaining the rights to Xenazine in the US adds another important growth driver to our series of multiple specialty product launches expected over the next several years," said Jeffrey S. Aronin, president and chief executive officer of Ovation. "This drug represents a strong strategic fit and complements our existing portfolio of central nervous system products, in addition to continuing our business strategy of pursuing opportunities to bring important new medicines to severely ill patients with unmet medical needs."

Noting Ovation strong commercial capabilities to support the launch of Xenazine, Aronin added, "We will be able to efficiently and effectively reach patients suffering from this devastating neuro-degenerative and ultimately fatal disease. We are pleased that we can bring to these patients the first approved therapy to treat this disorder."

Ovation is a fast-growing biopharmaceutical company that develops, manufactures and markets medically necessary therapies to satisfy unmet medical needs for patients with severe illnesses. Headquartered in Deerfield, Illinois., with products available in more than 85 countries.