Watson Acquires Columbia Labs Crinone, Prochieve Product Line

Crinone is currently used for progesterone supplementation or replacement as part of an Assisted Reproductive Technology (ART) treatment for infertile women with a progesterone deficiency.

The product is also available under the trade name Prochieve in both 4% and 8% concentrations. Prochieve 4% is indicated for the treatment of secondary amenorrhea.

As per the terms of the agreement Columbia received an initial payment of $47m for exclusive progesterone gel product rights in the US from Watson Pharma.

With the acquisition Watson said that it has received the right to designate a member to Columbia’s board of directors.

The additional contingent payments related to the successful completion of clinical development milestones, receipt of regulatory approvals and product launches could total approximately up to $45.5m. Columbia is also expected to receive royalty on Watson’s sales of the progesterone gel product.

Moreover, Columbia is expected to take up the responsibility of the anticipated clinical and regulatory costs related to obtaining approval for the progesterone gel product for prevention of pre-term birth in women with a short cervix, whereas Watson is expected to be responsible for the excess development costs over a defined cap, if any.

Pursuant to a supply agreement, Columbia is expected to be responsible for manufacturing the progesterone gel products.

Watson plans to immediately begin marketing Crinone and Prochieve in the US to reproductive endocrinologists and Ob/Gyns through Watson’s Brand Sales Forces.

Paul Bisaro, president and CEO of Watson Pharma, said: “These products are expected to become an integral part of our portfolio and we will aim to grow these products utilising Watson’s Brand sales team.

“We are also pleased with the progress Columbia has made in their Phase 3 clinical study as we collaborate together for NDA filing for a pre-term birth indication for Prochieve in 2011.”