Actavis pays Valeant $55M for drug rights; Incyte gets $25M milestone

US generics major Actavis (NYSE: ACT), reportedly the subject of a stalled takeover bid from Canada’s Valeant Pharmaceuticals International (TSX: VRX; The Pharma Letter April 29), said yesterday (May 1) that its Actavis Specialty Brands unit has acquired worldwide rights to Valeant's metronidazole 1.3% vaginal gel antibiotic development product, a topical antibiotic for the treatment of bacterial vaginosis.

Under the terms of the deal, Actavis is acquiring the product for approximately $55 million which includes upfront and certain milestone payments, and minimal royalties for the first three years of commercialization. In the event of generic competition on metronidazole 1.3%, should Actavis choose to launch an authorized generic product, the company would share the gross profits of the authorized generic with Valeant.

"We are very pleased to acquire the rights to an additional potential product that further expands our Women's Health development pipeline, and look forward to the ultimate launch of the product," said Fred Wilkinson, president, Actavis Specialty Brands, adding: "Assuming a filing of later this spring, Metronidazole could potentially launch in the USA in mid-2014."