Andrx to divest Altoprev and Fortamet

Andrx corporation has entered into agreements with First Horizon Pharmaceutical for the sale and licencing of certain rights to its Fortamet and Altoprev brand pharmaceutical products.

First Horizon has agreed to pay Andrx $50m at closing and up to $35m when Andrx achieves and maintains certain defined manufacturing service levels. Andrx is also entitled to royalties on net sales of both products, as defined. Andrx and First Horizon have also entered into a long-term manufacturing and supply arrangement.

The closing of the transaction, which is subject to certain customary conditions including clearance under the Hart-Scott-Rodino Antitrust Improvements Act, is expected to occur within the next 30 to 60 days. After that closing occurs, Andrx has agreed to provide certain transition services to First Horizon for a period of time.

Thomas Rice, Andrx's chief executive officer, said: 'As we announced in January 2005, we have conducted a process through Banc of America Securities to dispose of our business of selling and marketing brand products. Though many expressed interest in our Fortamet and Altoprev products, it soon became clear that First Horizon was the right organisation for us to work with in order to optimise the short-term and long-term value of these products. This divestiture will enable Andrx to focus on our core strengths of formulation development of controlled-release pharmaceuticals and distribution, primarily for the generic marketplace, but also for certain brand opportunities. Indeed, our agreement with First Horizon contemplates possible future development collaborations.'