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news.Salix Pharmaceuticals has purchased the product rights to the gastrointestinal drug Pepcid and Diuril oral suspension from Merck & Co. for a $55 million up-front payment.
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Under the terms of the agreement, Salix will also make up to $6 million in potential sales-based milestone payments to Merck. Pepcid is a prescription product indicated for several gastrointestinal indications including the treatment of duodenal ulcer, benign gastric ulcer and gastroesophageal reflux disease.
“The acquisition of such a trusted brand and revenue-producing product as Pepcid oral suspension reflects the ongoing execution of the company's strategy to expand and diversify revenue,” said Carolyn Logan, president and CEO, Salix.
Salix also said it entered into a $100 million credit facility with Bank of America to help finance the deal and for working capital, capital expenditures and other acquisitions.