Santhera closes Juvantia acquisition and final upfront payment from Biovail

Switzerland's Santhera Pharmaceuticals, which is focused on orphan neuromuscular diseases, has announced the final closing of its acquisition of Oy Juvantia Pharma of Turku, Finland. Santhera issued 105,973 previously reserved shares from its authorized share capital to Juvantia investors, as announced when exercising its option to acquire Juvantia on August 17, 2009 (The Pharma Letter August 17 and 25).

The closing of the transaction triggers a final upfront payment of $4 million from Biovail Laboratories International, a subsidiary of Biovail Corp, Santhera's licensing partner for the further development and marketing of JP-1730/fipamezole to treat Dyskinesia in Parkinson's disease in the USA and Canada.

In August, Biovail acquired the US and Canadian rights to develop and commercialize JP1730/fiapmezole for the treatment of levodopa-induced Dyskinesia in Parkinson's disease. Under the terms of the agreement Santhera received a partial upfront payment of $8 million and is entitled to up to $180 million in development and commercialization milestones and royalties of 8% to 15% on future net sales. Following the closing of the acquisition of Juvantia, Santhera is now entitled to a final upfront payment from Biovail in the amount of $4 million.