CANONSBURG (dpa-AFX) - Generic drug maker Mylan Inc. (MYL) said Wednesday that it has agreed to acquire the U.S. rights to Arixtra, or fondaparinux sodium, injection as well as the authorized generic of Arixtra from Aspen Global Inc. for up to $300 million.
The company noted that the addition of Aritxtra provides another important and complex injectable to complement its growing portfolio in the U.S.
Mylan's subsidiary Mylan Ireland Limited entered into an agreement to acquire the U.S. commercialization, marketing and intellectual property rights relating to Arixtra.
Arixtra, an anticoagulant drug, is indicated for the prophylaxis of deep vein thrombosis or DVT.
DVT may lead to pulmonary embolism in patients undergoing hip fracture surgery, including extended prophylaxis, hip replacement surgery, knee replacement surgery or abdominal surgery who are at risk for thromboembolic complications.
Mylan is already selling Arixtra in the U.S. through an interim distribution arrangement with Aspen, while Apotex is currently selling the authorized generic or AG of Arixtra, which will transition to Mylan Institutional by year end.
According to IMS Health, Arixtra and the AG of Arixtra had U.S. sales of about $18.8 million and $95.3 million, respectively, for the twelve months ending June 30, 2014.
Heather Bresch, CEO of Mylan said, 'DVT/PE is a serious health concern that is estimated to affect up to 600,000 people in the U.S. The addition of Arixtra is an attractive opportunity to broaden the range of therapeutic categories we market in the U.S., in both the hospital and retail settings, and bolster our growing portfolio of complex injectables to better meet our customers' needs.'
Mylan will pay Aspen $225 million upon completion of the transaction, while an additional $75 million will be held in escrow and released upon satisfaction of certain conditions.
Aspen will supply Arixtra and the AG of Arixtra to Mylan, subject to certain terms and conditions. The transaction is subject to regulatory clearances. All other terms of the agreement remain confidential.
Mylan said that the transaction will be immediately accretive to its adjusted earnings.
MYL closed Tuesday's trading at $47.47, down $0.49 or 1.02 percent on a volume of 4.38 million shares.
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