The terms of the agreements include a $100 million payment to be made at closing, warrants for the purchase of up to one million shares of the company’s common stock at a price of $35 per share, as well as ongoing consideration for supply of products.
The Flector Patch, which delivers the anti-inflammatory and analgesic effects of diclofenac epolamine, is indicated for the topical treatment of acute pain due to minor strains, sprains, and contusions. Institut Biochimique currently markets this product in Europe, and Alpharma is targeting a US launch for early 2008.
Dean Mitchell, president and CEO of Alpharma, said: “The Flector Patch is an excellent strategic fit that will diversify our product portfolio, leverage our current sales force, and is consistent with Alpharma’s commitment to bring innovative products to the market to enhance physicians’ ability to treat pain.”
In the second half of 2007, the company expects to incur approximately $20 million ($0.30 earnings per share) of costs that are incremental to its most recent outlook, principally for sales force expansion, marketing and related activities, to prepare for the US launch of the Flector Patch in early 2008.
Under the terms of its agreement, Alpharma will also receive exclusive US license and distribution rights to Tirosint (synthetic levothyroxine sodium) gel capsules for thyroid hormone replacement therapy, recently approved by the FDA.