Gedeon Richter buys rights to Janssen contraceptive patch

Hungary's largest drugmaker Gedeon Richter (RICHT: HB) has signed an agreement with Johnson & Johnson (NYSE: JNJ) subsidiary Janssen Pharmaceutica, to acquire ex-USA rights to the latter’s Evra (norelgestromin, ethinyl estradiol) transdermal contraceptive patch assets.

The acquisition carries a cost of $263.5 million, which will be financed by existing cash balance of >400 million euros ($483 million) and will add significant scale to Richter’s existing contraceptive portfolio.

Janssen will provide post-closing transitional support to facilitate the transfer of the Outside US marketing authorizations. The asset purchase agreement is complemented by a transitional business license agreement and series of other related agreements to run the business without interruption during the period required to transfer marketing authorizations to Richter.