Biovail Acquires Prestwick Pharmaceuticals
Biovail Corporation announced it has acquired Prestwick Pharmaceuticals, Inc., a privately held, U.S.-based pharmaceutical company that holds the Canadian and U.S. licensing rights to Xenazine® (tetrabenazine tablets). Xenazine® was recently approved by the United States food and Drug Administration (FDA) for the treatment of chorea associated with Huntington’s disease. Xenazine® was granted Orphan Drug Designation by the FDA, which provides the product with seven years of market exclusivity in the United States.
Prestwick recently entered into an exclusive agreement with Ovation Pharmaceuticals, Inc., a U.S.-based specialty biopharmaceutical company, to commercialize Xenazine® in the U.S. The product’s commercial launch is anticipated late-2008.
Under the terms of the agreement, Biovail has paid $100 million to acquire 100% of Prestwick Pharmaceuticals, Inc. and related license rights. Beyond Xenazine®, the acquisition also provides Biovail with other early-stage products, including Lisuride Sub Q (advanced Parkinson’s disease), Lisuride Patch (Parkinson’s disease) and D-Serine (Schizophrenia).
The transaction is expected to be accretive to both earnings per share and cash flows in 2009.
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