Forest spends $240 million for US rights to Saphris; streamlines operations

US drugmaker Forest Laboratories (NYSE: FRX) is acquiring exclusive rights in the USA for Saphris (asenapine) sublingual tablets, a treatment for adult patients with schizophrenia or acute bipolar mania, from pharma giant Merck & Co (NYSE: MRK).

Under the terms of the deal, Forest will pay an upfront $240 million and additional payments to Merck based on defined sales milestones. Merck will remain responsible for product supply. Forest will assume responsibility for continued commercialization, including completing certain post marketing studies of Saphris following a transition period, and will be the marketing authorization holder. Other details of the financial terms of the agreement were not disclosed. The agreement is expected to close in early calendar year 2014 pending regulatory review and satisfaction of all closing conditions.

Saphris is an atypical antipsychotic approved by the US Food and Drug Administration and launched in 2009 by Schering-Plough (which Merck acquired). Merck recorded net sales of $150 million for the drug in the 12month period ending September 2013.