Watson to acquire US rights to Columbia Labs' Crinone and Prochieve for up to $92 million

US drugmaker Watson Pharmaceuticals has entered into an agreement to expand its Women's Health brand product portfolio with the acquisition of the exclusive US rights to Columbia Laboratories' bioadhesive progesterone gel products currently marketed under the trade names Crinone and Prochieve for the indications of infertility and secondary amenorrhea.

Deal includes equity stake in Columbia

Under the terms of the deal, Watson will pay Columbia an initial $47 million and will receive exclusive progesterone gel product rights in the USA and 11.2 million newly-issued shares of Columbia common stock. Watson will also have the right to designate a member of Columbia's board of directors. Additional contingent payments related to the successful completion of clinical development milestones, receipt of regulatory approvals and product launches could total up to around $45.5 million. Watson will also pay Columbia a royalty on its sales of the progesterone gel product and any next generation products.