Lorcaserin is Arena’s Phase III oral drug candidate being developed for the treatment of obesity.
The agreements with Siegfried include: a long-term supply agreement for Arena’s purchase of lorcaserin active pharmaceutical ingredient (API) at competitive rates for a period of 15 years after FDA approval; an asset purchase agreement for Arena’s purchase of certain finishing facility assets and technology, including the transfer of certain equipment, fixtures and real estate assets used in converting API into tablet form, the expected finished drug product (FDP) of lorcaserin.
The purchase price of the acquired assets is CHF32 million in cash and approximately 1.5 million shares of Arena common stock. The cash is payable CHF22 million at closing and CHF10 million payable in three equal installments in the third, fourth and fifth years after closing. The stock is subject to a lock-up agreement for a period of three years from closing.