Amarin Corporation to sell assets to Valeant Pharmaceuticals International
Amarin Corporation has entered into a definitive agreement with Valeant Pharmaceuticals International whereby Valeant will acquire its US-based subsidiary, Amarin Pharmaceuticals, and a majority of its US products in a cash transaction valued at approximately US$46m, including $8m in milestone payments.
Amarin Corporation has entered into a definitive agreement with Valeant Pharmaceuticals International whereby Valeant will acquire its US-based subsidiary, Amarin Pharmaceuticals, and a majority of its US products in a cash transaction valued at approximately US$46m, including $8m in milestone payments.
Valeant will also assume certain other outstanding liabilities, including Amarin's obligation to make a milestone payment to Elan of $10m, if sales of Zelapar reach a certain level.
Under the terms of the transaction Valeant will make an initial payment of $38m to Amarin Corporation for the company's interests in Amarin Pharmaceuticals, along with the rights to Amarin's product portfolio. This includes includes Permax, a product indicated for the adjunct treatment of Parkinson's disease; a primary care product portfolio with a broad range of indications; and Zelapar, an in-licensed, late-stage development product for the adjunct treatment of Parkinson's disease, which has received an approvable letter from the Food & Drug Administration (FDA).
The agreement calls for Valeant to make a mile-stone payment to Amarin Corporation of $3m following the successful completion of the previously announced Zelapar clinical safety studies, and a further milestone of $5m upon final approval of the Zelapar NDA by the FDA.
Amarin will retain exclusive US rights to LAX-101, a compound in development for the treatment of Huntington's Disease. Following the transaction, Amarin Corporation will concentrate on working with Laxdale, the developer of LAX-101, to progress the compound through additional Phase III clinical studies. LAX-101 has undergone one Phase III trial, which identified promising results, and preparations are underway for an additional Phase III study in the US.
Amarin anticipates that the net proceeds of the transaction will be sufficient to pay the financial obligations due to Elan Corporation.
'This transaction permits Amarin to resolve its immediate financial obligations, including a payment due this quarter to Elan Corporation, allowing the company to focus on bringing significant compounds to market and restoring shareholder value,' said Rick Stewart, ceo of Amarin Corporation. 'Amarin's future efforts will concentrate on progressing the studies for LAX-101, selectively in-licensing late stage development com-pounds and acquiring promising compounds where available.'