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Dec 12, 2006

Indevus Procures Valera for $120M

  • Indevus Pharmaceuticals has agreed to acquire Valera Pharmaceuticals in a stock swap worth $120 million, plus contingent milestone-based payments. "The acquisition of Valera firmly establishes Indevus as an emerging leader in the specialty areas of urology and men's health," points out Glenn L. Cooper, M.D., chairman and CEO of Indevus.

    The companies also entered into a co-promotion agreement under which Indevus' sales force will co-promote Vantas, a treatment for advanced prostate cancer, in the U.S.

    Indevus says it will pay $7.75 per Valera share, a 43.25% premium over Valera’s closing price the day before the acquisition announcement. Payments based on the achievement of future product milestones will add $3.50 per share.

    "Upon closing,” Dr. Cooper notes, “Indevus' robust product portfolio will include three marketed products, and the combined company anticipates five new product launches within two years, including three products from Valera." He expects the transaction will be accretive within two years.

    Indevus anticipates co-promotion of Vantas to begin in January 2007. According to the deal, Indevus expects to earn royalties of 13.5% on sales of Vantas up to a specified unit level and up to 30% above that level. For sales of Vantas to certain specialty pharmacy accounts, Indevus will receive royalties of 35%.

    The companies predict to close the merger on or around April 30, 2007. Indevus opened trading at $7.45, a 5.2% decrease from its Monday close.



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Scientifically Studying Ecstasy

MDMA (commonly known as the empathogen “ecstasy”) is classified as a Schedule 1 drug, which is reserved for compounds with no accepted medical use and a high abuse potential. Two researchers from Stanford, however, call for a rigorous scientific exploration of MDMA's effects to identify precisely how the drug works, the data from which could be used to develop therapeutic compounds.

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