QLT Inc, has announced that its wholly owned subsidiary, QLT USA Inc., has completed the sale of QLT USA's generic dermatology and manufacturing business located in Fort Collins, Colorado to Tolmar Inc., a private pharmaceutical company.

The purchase price is US$21 million, subject to customary post-closing adjustments, 60 per cent of which was paid in cash at closing and the balance will be paid in two equal cash instalments before the end of the first quarter of 2007. There will be an additional US$1 million payment if commercial orders for Aczone are produced in the Fort Collins plant.

"We are very pleased to complete this divestment as part of our strategy to focus on our core business," said Bob Butchofsky, president and CEO of QLT. "In addition to increasing our consolidated cash, this transaction will allow us to focus on the profitability of our ongoing business."

The agreement includes the divestment of the Fort Collins manufacturing facility, the generic dermatology business and the dental products business. QLT expects approximately 140 employees to be transitioned to the purchaser with the divestiture of this business. Eligard will continue to be manufactured in the Fort Collins plant under the terms of a supply agreement between QLT USA and Tolmar.

Michael R Duncan, previously president of QLT USA, will become CEO of Tolmar. "I am very excited to join Tolmar," said Mr Duncan. "This transaction will allow us to expand our dermatology and pharmaceutical manufacturing business."

QLT Inc. is a global biopharmaceutical company specializing in developing treatments for eye diseases as well as dermatological and urological conditions. Together with our subsidiaries, we have combined our expertise in the discovery, development and commercialisation of innovative drug therapies with our two unique technology platforms, photodynamic therapy and Atrigel, to create products such as Visudyne and Eligard.