Pfizer to buy NextWave Pharma for as much as $680 million

Global drugs behemoth Pfizer (NYSE: PFE) revealed yesterday that it is prepared to pay up to $680 million to acquire USA-based, privately-held NextWave Pharmaceuticals, which is focused on the development and commercialization of unique products for the treatment of attention deficit/hyperactivity disorder (ADHD) and related central nervous system (CNS) disorders.

NextWave is the developer of Quillivant XR (methylphenidate hydrochloride) for extended-release oral suspension, CII, the first once-daily liquid medication approved in the USA for the treatment of ADHD, and holds exclusive North American commercialization rights to Quillivant XR, which received approval from the US Food and Drug Administration on September 27, and is expected to be available in pharmacies in the USA in January 2013. Quillivant XR was developed in collaboration with Tris Pharma, NextWave’s technology and manufacturing partner. Methylphenidate hydrochloride is the active ingredient of Johnson & Johnson’s sustained-release ADHD drug Concerta, which had US sales in the 12 months to end July of $1.2 billion, as well as of Ritalin.

$425 million payments dependent on sales milestones