Salix Purchases Pepcid and Diuril from Merck & Co. for $55M
Drugs have gastrointestinal and edema indications, respectively.!--h2>
Salix Pharmaceuticals purchased the U.S. prescription pharmaceutical product rights to Pepcid® Oral Suspension and Diuril® Oral Suspension from Merck & Co.
Pepcid Oral Suspension is indicated for several gastrointestinal indications, including the treatment of duodenal ulcer, benign gastric ulcer, and gastroesophageal reflux disease. Diuril Oral Suspension has applications in edema and hypertension.
Under the terms of the agreement, Salix will make a $55 million up-front payment and up to $6 million in potential sales-based milestone payments to Merck.
Commenting on this development, Carolyn Logan, president and CEO, Salix, stated, "These marketed products should generate immediate revenue while requiring minimal promotional expense. Pepcid Oral Suspension achieved net sales in the U.S. of approximately $20 million in 2006.”