The purchase price will increase with contingent payments of up to $3.50 per share based on the achievement of future product milestones.
“The acquisition of Valera firmly establishes Indevus as an emerging leader in the specialty areas of urology and men's health and fully leverages our national sales force,” said Glenn Cooper, chairman and CEO of Indevus.
Valera is focused on the development and commercialization of urology and endocrinology products. The company has multiple products in clinical development including Vantas for prostate cancer, Supprelin-LA for the treatment of central precocious puberty and Valstar which is indicated for the treatment of BCG-refractory bladder cancer.
“Upon closing, Indevus' robust product portfolio will include three marketed products and the combined company anticipates five new product launches within two years, including three products from Valera,” added Glen Cooper.
Separately, Indevus and Valera have entered into a co-promotion agreement under which Indevus' sales force will promote Vantas in the US. Terms of the agreement provide Indevus with royalties of 13.5% on sales of Vantas up to a specified unit level and increases to 30% above the specified level.
For sales of Vantas to specified specialty pharmacy accounts, Indevus will receive royalties of 35%. Indevus anticipates beginning to co-promote the drug in January 2007.