Opko buys assets from Schering-Plough; acquires Chilean drugmaker

Miami, USA-based Opko Health has agreed to acquire from drug major Schering-Plough assets relating to a neurokinin-1 receptor antagonist program, marking Opko's latest step away from the RNAi drugs space. The companies did not disclose the terms of the agreement.

According to Opko, Schering-Plough is making the divestiture, which includes the Phase II chemotherapy-related nausea and vomiting prophylactic rolapitant, in order to meet certain requirements for its planned $41.1 billion merger with Merck & Co, which is expected to close before year-end. The deal with Opko is said to be dependent on the merger going through

NK-1 receptors are mostly found in the brain. However, they are also found in other tissues of the body. Their activation causes a release of neurotransmitters and other signaling molecules that play a key role in controlling nausea and vomiting amongst other functions.

According to analysts at Zacks Equity Research, the US market for nausea and vomiting drugs is estimated to be in excess of $2 billion. Rolapitant, Schering's lead neurokinin, recently completed mid-stage studies for the prevention of nausea and vomiting due to cancer chemotherapy, surgery and other indications. The company has initiated early-stage studies for another compound in the same class.

Merck merger progresses

Meanwhile, the proposed merger with Merck took another step towards completion when it was cleared by Australia's competition watchdog. The Australian Competition and Consumer Commission was initially apprehensive about competition in the animal health sector due to the two companies' overlapping businesses in the Australian animal health market.

This concern was put to rest following French drug major Sanofi-Aventis' acquisition of Merck's interest in Merial, a leading animal health company formed through a 50/50 joint venture between Merck and Sanofi-Aventis and now a wholly-owned subsidiary of Sanofi.

Pays $16 million Pharma Genexx

Ahead of the S-P deal, Opko said that it has entered into a definitive agreement to acquire Pharma Genexx, a privately-held Chilean pharmaceutical company engaged in the representation, importation, commercialization and distribution of pharmaceutical products, over-the-counter medicines and medical devices for the government, private and institutional markets. The closing of the transaction, subject to customary closing conditions, is expected to occur shortly.

Opko will acquire Pharma Genexx for $16 million in an all cash transaction from FASA, the largest drugstore chain in Latin America, and Laboratorios Volta, a Chilean pharmaceutical company. Pharma Genexx started operations in 2006 and has since enjoyed continued growth in sales and profits. It generated turnover of approximately $11 million in 2008 and around $7.6 million for the first six months of 2009.