Rationale for acquisition of Epic Pharma by PuraCap?

11 April 2016
mergers-acquisitions-big

The news last week that China-based Humanwell Healthcare Group and PuraCap Pharmaceutical have entered into a definitive agreement to acquire 100% of privately-held US generic drugs marker Epic Pharma for $550 million (The Pharma Letter April 8), seems to have a sub-text: an unidentified product license asset.

In June 2015, Elite Pharmaceuticals (OTC: ELTP) licensed SequestOX (naltrexone and oxycodone hydrochloride), then known only as ELI-200, to Epic Pharma. This was Elite’s lead opioid abuse-deterrent candidate for the management of moderate to severe pain where the use of an opioid analgesic is appropriate. Under the terms of the deal, Epic was due to pay Elite non-refundable milestone payments totaling $15 million and a royalty based on net product sales. The term of the license is five years and the license is renewable upon mutual agreement at the end of the initial term.

According to a long-term investor in Elite and other pharmaceutical companies working to help solve the opioid abuse epidemic who contacted TPL, “PuraCap wants in on the opioid market, and Elite's proprietary technology and its licensing deal with Epic was their way of gaining that access.”

This article is accessible to registered users, to continue reading please register for free.  A free trial will give you access to exclusive features, interviews, round-ups and commentary from the sharpest minds in the pharmaceutical and biotechnology space for a week. If you are already a registered user please login. If your trial has come to an end, you can subscribe here.

Login to your account

Become a subscriber

 

£820

Or £77 per month

Subscribe Now
  • Unfettered access to industry-leading news, commentary and analysis in pharma and biotech.
  • Updates from clinical trials, conferences, M&A, licensing, financing, regulation, patents & legal, executive appointments, commercial strategy and financial results.
  • Daily roundup of key events in pharma and biotech.
  • Monthly in-depth briefings on Boardroom appointments and M&A news.
  • Choose from a cost-effective annual package or a flexible monthly subscription
The Pharma Letter is an extremely useful and valuable Life Sciences service that brings together a daily update on performance people and products. It’s part of the key information for keeping me informed

Chairman, Sanofi Aventis UK



Today's issue

Company Spotlight





More Features in Pharmaceutical