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news.Endo has acquired all of the outstanding stock of RxKinetix, a company that develops new formulations of approved products for oral mucositis and other supportive care oncology conditions.
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The company will now operate as part of a newly created wholly owned subsidiary of Endo Pharmaceuticals.
The transaction includes an up-front payment of up to $20 million, with the potential for up to an additional $95 million based on clinical development and regulatory milestones. The acquisition is expected to reduce Endo’s 2006 adjusted earnings by approximately $0.02 per share.
RxKinetix’s lead product is RK-0202, an oral-rinse with the active ingredient formulated in its proprietary ProGelz drug delivery platform. RK-0202 is in clinical phase II for the prevention of oral mucositis, painful mouth sores that often occur in cancer patients.
“The acquisition of RxKinetix is consistent with our strategic goal of expanding into therapeutic areas that are complementary to pain,” said Peter Lankau, president and CEO of Endo. “Endo has expanded its commercial presence among oncologists with the recent launch of Opana ER and Opana tablets, and Rapinyl, our quick-dissolving fentanyl tablet in development for breakthrough cancer pain, is currently in phase III trials.”