Shionogi pays Victory Pharma $118 million for nine drugs

The US subsidiary of Japanese drug major Shionogi (TKO: 4507) has entered into an agreement to acquire all currently marketed products from USA-based Victory Pharma, including seven treatments for pain and two for infectious diseases, including the latter’s lead product Naprelan (naproxen sodium). A couple of years ago Shionogi made a $150 million offer to acquire Victory, but it did not proceed to completion due to “unforeseen” events that occurred after the merger transaction was initiated (The Pharma Letter May 28, 2009).

The products, which are all approved by the Food and Drug Administration, will be marketed by Shionogi’s existing sales force. The terms of the deal stipulate a cash payment of $118 million at closing with up to $9 million in additional milestone payments. The transaction is currently subject to expiration of the waiting period under the Hart Scott Rodino Antitrust Improvements Act of 1976, as amended, and to other customary closing conditions. It is anticipated that the transaction may close as early as July 26, 2011.

The centerpiece of the portfolio is Victory’s lead product Naprelan, a once-daily controlled-release formulation of naproxen sodium, a non-steroidal anti-inflammatory drug (NSAID). Additionally, Shionogi will obtain marketing rights for other pain management products such as Xodol (acetaminophen/hydrocodone) and Fexmid (cyclobenzaprine), as well as the anti-infectives Moxatag (amoxicillin) and Keflex (cefalexin).