Alliance Pharma, a U.K.-based specialty pharmaceutical company, signed a conditional agreement to buy Cambridge Laboratories’ U.K. and Ireland-based businesses for a base consideration of £14.3 million ($22.3 million) in cash and shares. The deal also includes an additional deferred contingent payment of £1.6–2.1 million ($2.50–3.27 million) and the value of the inventory held by the vendor companies at completion.
The acquisition will give Alliance Pharma 18 Cambridge Labs prescription products. These include: ImmuCyst®, an immunotherapy for superficial bladder cancer; Gelclair®, an oral gel for managing oral mucositis in chemotherapy patients; and the Hodgkin lymphoma therapy procarbazine. Alliance says that combined sales of ImmuCyst, Gelclair, and procarbazine represent some 40% of Cambridge Labs total sales in 2009. Sales of the three products have also been growing at a combined rate of about 18% per annum over the last three years, the firm adds.
The £1.6–2.1 million deferred contingent consideration will be payable if Cambridge Labs’ ImmuCyst license is extended beyond March 2012. The final amount of the payment will depend on the level of ImmuCyst sales during 2010 and 2011. A spokesperson for Alliance told GENthat Cambridge Labs sells ImmuCyst under license from Sanofi.
In June 2009, Biovail paid Cambridge Labs $200 million up front for worldwide development and commercialization rights to the latter’s entire portfolio of tetrabenazine products including Xenazine®/Nitoman® and associated intellectual property rights. The deal included an additional $30 million in payments to be made over two years.