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Par Pharmaceutical Companies, Inc. today announced that it amended its agreement with Spectrum Pharmaceuticals, Inc. for $20 million in cash to increase its share of profits from the generic versions of GlaxoSmithKline's Imitrex(R) Injection, which will be immediately accretive to 2008 earnings and provide a strong return on the Company’s investment
Woodcliff Lake, NJ, USA | May 7, 2008 | Par Pharmaceutical Companies, Inc. (NYSE: PRX) today announced that it amended its agreement with Spectrum Pharmaceuticals, Inc. (NasdaqGM: SPPI) for $20 million in cash to increase its share of profits from the generic versions of GlaxoSmithKline's Imitrex(R) Injection, which will be immediately accretive to 2008 earnings and provide a strong return on the Company’s investment. As a result of the agreement, Par’s profit share will increase from 38% to 95% from the commercialization of sumatriptan injection. Imitrex Injection (sumatriptan succinate injection) is used for the acute treatment of migraine attacks with or without aura, and the acute treatment of cluster headache episodes. Annual US sales of Imitrex Injection are approximately $220 million, according to IMS Health.
In February 2006, Par entered into a collaborative agreement with Spectrum to develop and market generic drugs, including sumatriptan injection. In November 2006, Spectrum entered into a settlement agreement with GlaxoSmithKline (GSK) that resolved US patent litigation related to GSK’s Imitrex Injection. Par is permitted to sell generic versions of the 4mg and 6mg starter kits and the 4mg and 6mg prefilled syringe cartridges with an expected launch date no later than November 2008, which is three months before the compound patent expires in February 2009. Par has also acquired Spectrum’s remaining interest for the right to sell the 6mg vials.
“We are pleased to add the full line of sumatriptan injectable products to our generic portfolio,” said Paul Campanelli, president of Par’s generic division. “Patients suffering from migraines will soon have a familiar and more affordable option available to them.”
About Par
Par Pharmaceutical Companies, Inc. develops, manufactures and markets generic drugs and innovative branded pharmaceuticals for specialty markets. For press release and other company information, visit www.parpharm.com.
SOURCE: Par Pharmaceutical Companies, Inc. |
