The close follows the early termination by the US Federal Trade Commission of the waiting period under the Hart-Scott-Rodino Antitrust Act. Pradefovir is an experimental hepatitis B drug, which Valeant had licensed from Metabasis in 2000. Valeant has been conducting clinical trials to evaluate the safety and efficacy of the drug in chronic hepatitis B.
Under the terms of the agreement, which was announced in December 2006, Schering-Plough will make an upfront payment of $19.2 million to Valeant and $1.8 million to Metabasis. Schering-Plough will also pay up to an additional $90 million in aggregate fees upon the achievement of certain development and regulatory milestones to Valeant and Metabasis. Schering-Plough will also pay royalties to Valeant and Metabasis in the event pradefovir is commercialized.