Pfizer to purchase NextWave for US$700m
Agreement includes recently approved Quillivant XR ADHD treatment in US
Pfizer is set to buy NextWave Pharmaceuticals, a US-based company focused on treatments for attention deficit/hyperactivity disorder (ADHD) and related central nervous system disorders, for US$700m.
NextWave, a privately held firm based in California, is the developer of Quillivant XR (methylphenidate hydrochloride) for extended-release oral suspension, the first once-daily liquid medication approved in the US for the treatment of ADHD.
NextWave holds the exclusive North American marketing rights to the drug, which it developed with its technology and manufacturing partner Tris Pharma.
Quillivant XR was approved by the US FDA on 27 September, and is expected to be available early next year.
Pfizer made an option payment of $20m to NextWave in the second quarter to establish a merger agreement. The company will pay NextWave a further $225m when the transaction closes, and has agreed additional payments of up to $425m based on sales milestones.
‘This agreement demonstrates our focused expansion of the Established Products US brands business to offer a diverse portfolio of high-quality medicines that meet patients’ needs,’ said Albert Bourla, president and general manager in Pfizer’s Established Products Business Unit.
‘By combining the advantages of Quillivant XR with Pfizer’s commercialisation expertise, we will be able to provide ADHD patients and their caregivers with a new treatment option.’
Jay Shepard, president and CEO of NextWave, said: ‘NextWave has been focused on helping patients and families who struggle with the challenges of ADHD. We are excited to partner with Pfizer, one of the most respected pharmaceutical organizations in the world, to bring the unique benefits of Quillivant XR to those affected by this challenging condition.’
The transaction is expected to close during the fourth quarter 2012, subject to regulatory approval in the US, and other customary closing conditions.
