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news.In order to focus on treating disorders of the central nervous system (CNS), Biovail has agreed to acquire worldwide development and marketing rights to entire portfolio of tetrabenazine drugs to treat chorea (a symptom of Huntington’s disease) from Cambridge Laboratories for $230 million
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Last year, the company acquired Canadian and US licensing rights to the drug Xenazine, by purchasing Prestwick Pharmaceuticals. It was the company’s first foray into the CNS disorder specialty market.
To complete the present deal, Biovail will also pay another $30 million in two tranches over the next two years. The acquisition, as per the company, includes a controlled-release formulation of tetrabenazine in development for Tourette Syndrome, as well as a tetrabenazine-derived new chemical entity that may enter mid-stage clinical development in the next one year.
Following the acquisition, Biovail will get a broad range of intellectual property rights for the product portfolio.
Bill Wells, CEO of Biovail, said: “This acquisition will be immediately accretive to revenues, margins and operating cash flows, and is anticipated to be moderately accretive to GAAP earnings per share in 2010.”