Azur Pharma Announces the Signing of a Definitive Agreement to Acquire PRIALT From Elan

16-Mar-2010 - Ireland

Azur Pharma Limited announced it has signed a definitive agreement with Elan Pharmaceuticals, Inc. (a subsidiary of Elan Corporation, plc) to acquire the analgesic therapy, PRIALT(R) (ziconotide intrathecal infusion).

PRIALT is indicated in the United States for the management of severe chronic pain in patients for whom intrathecal ("IT") therapy is warranted, and who are intolerant of or refractory to other treatment, such as systemic analgesics, adjunctive therapies, or IT morphine. PRIALT was approved by the U.S. Food and Drug Administration ("FDA") in December 2004 and launched in January 2005.

Azur has agreed to acquire worldwide rights (other than Europe) to PRIALT. Azur will offer employment to a 34 person specialty pharmaceutical infrastructure, which is currently supporting the product at Elan. End-user sales of PRIALT in the U.S. were approximately $20 million and $18 million in 2009 and 2008, respectively.

Mr. Seamus Mulligan, Chairman and Chief Executive of Azur Pharma, stated "We are pleased to add PRIALT, an important therapeutic for the management of severe chronic pain, to our portfolio. We look forward to welcoming the PRIALT team to our organisation and to their continued support for this product. We believe PRIALT will grow with continued investment in the brand. The patents covering PRIALT run through December 2016. Our business will have 170 employees at closing and had revenues of approximately $100 million for 2009. We expect to add other products and development projects to both our CNS and Women's Health businesses during the course of 2010 and look forward to the continued growth of our business."

The acquisition is expected to close in the second quarter of 2010. Financial terms are not disclosed. Azur will utilise its existing cash resources to finance the transaction. The acquisition will be EBITDA positive from Closing.

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