ViroPharma to acquire DuoCort Pharma for up to $164 million, adding European orphan drug to pipeline

The USA’s ViroPharma (Nasdaq: VPHM) says it has signed a definitive agreement to acquire DuoCort Pharma AB, a private company based in Helsingborg, Sweden, focused on improving glucocorticoid replacement therapy. The acquisition of DuoCort will further expand ViroPharma's orphan disease commercial product pipeline.

On closing, ViroPharma will pay an upfront closing cost of 220 million Swedish kronor ($33.6 million). Additionally, there are contingent milestone payments of up to 860 million kronor or around $131 million associated with manufacturing, sales thresholds and territory expansion.

The European Medicines Agency’s Committee for Medicinal Products for Human Use (CHMP) adopted a positive opinion for their product Plenadren (hydrocortisone, modified release tablet) for the treatment of adrenal insufficiency in adults on July 21, 2011, and the company anticipates approval of Plenadren by the European Commission in the fourth quarter of 2011. Conditions to closing of this acquisition include the approval of Plenadren by the EC; EC confirmation of Committee for Orphan Medicinal Products (COMP) Orphan drug designation; and an amended agreement with the product's contract manufacturer.