Firm will pay $7.5 million upon closing and the rest once the product, which is currently under FDA review, is approved.
KV Pharmaceutical agreed to pay up to $82 million for U.S. and worldwide rights to Hologic’s Gestiva. The drug is pending approval for use in the prevention of preterm birth in certain categories of women.
The FDA issued an approvable letter in October 2006 and a final approval is anticipated in late 2008, according to the companies. While $7.5 million will be paid upon closing of the agreement, the balance is expected upon the agency’s okay and the production of launch quantities of Gestiva. KV expects Gestiva to be additive to its earnings per share in the first 12 months following its launch.
The development of Gestiva was originated by Adeza Biomedical, which was bought by Cytyc. In October Hologic acquired Cytyc.