KV acquires Gestiva from Hologic in $82 million deal
BEDFORD, Mass. Hologic and KV Pharmaceuticals have signed an agreement under which Hologic will sell full rights of its drug Gestiva to KV, according to published reports.
The drug, which is used to prevent preterm birth in pregnant women with a history of at least one spontaneous preterm birth, is still waiting for approval from the Food and Drug Administration and therefore the agreement can only be completed once the drug is approved.
The development of Gestiva was originally started by Adeza Biomedical, which was acquired by Cytyc on April 2, 2007. On Oct. 22, Hologic completed its business combination transaction with Cytyc and, as a result, acquired all rights to Gestiva.
KV Pharmaceuticals will pay Hologic $82 million in cash, $7.5 million of which is payable at the closing of the transaction and the balance of which is payable upon final approval by the FDA of the Gestiva application and the production of a quantity of Gestiva suitable to enable the commercial launch of the product. The closing of the transaction is expected to occur within 30 days after the satisfaction of customary closing conditions.
“We are pleased to complete this transaction to sell the Gestiva product line to KV Pharmaceuticals,” Jack Cumming, chief executive officer, Hologic, said. “We believe women worldwide will better realize the benefits of Gestiva coming from a dedicated pharmaceutical firm. This will also allow Hologic to remain focused in our primary fields of medical devices and cancer diagnostics for women.”
Despite solid fourth quarter, Wyeth cautious about 2008
MADISON, N.J. Wyeth released its 2007 fourth-quarter report and it showed that while the company profited in the fourth quarter, the company expects 2008 to be an off year, according to published reports.
Wyeth said net income for the three months that ended Dec. 31 rose to $1.02 billion from $855.4 million. Wyeth’s fourth-quarter sales rose 10 percent to $5.76 billion from $5.22 billion a year earlier. Sales of Effexor rose 3 percent to $968 million.
Wyeth, though, now is facing trouble for 2008, and it comes in the form of generic competition. Generic manufacturers recently began selling copycat versions of Wyeth’s drug Protonix, for heartburn, which is expected to erode sales of Wyeth’s product.
Wyeth said it planned on seeking lost profits and other damages from the generics companies in a patent-infringement trial expected later this year. Protonix had $1.9 billion in sales in 2007. Wyeth also faces potential new generic competition for two other major drugs, the antidepressant Effexor and antibiotic Zosyn.
Sales of Effexor rose 3 percent to $968 million, but those sales might take a hit if Sun Pharmaceuticals launches a tablet version of the extended release version of Effexor in the summer.
Protonix sales rose 10 percent to $461 million. But Wyeth has lost U.S. market exclusivity for the drug after generic drugmakers Teva Pharmaceuticals and Caraco Pharmaceutical Labs—owned by Sun—launched copycat versions, despite the existence of a patent set to expire in 2010. Wyeth this week began selling its own generic Protonix in partnership with Prasco Laboratories.
Wyeth said it now expects 2008 earnings of $3.35 to $3.49 per share, excluding certain items, representing a decrease of 1 to 5 percent from 2007 levels. Analysts had expected 2008 earnings of $3.54 per share. The company also expects to cut its 50,000-employee workforce by 4-to-6 percent during the middle of this year,
Teva launches generic Protonix
NORTH WALES, Pa. Teva has launched its newest drug, a generic version of the Wyeth acid reflux drug Protonix. The drug is named Pantoprazole Sodium Delayed-Release.
The drug will be available in both strengths of the brand, 20 and 40 mgs in bottles of 90.
“Our customers count on Teva for a continuous supply of new generic products,” stated John Denman, vice president of. Sales and Marketing. “With the launch of pantoprazole sodium delayed-release tablets we add another quality product to our broad line of affordable generic pharmaceuticals.
This launch comes just a day after Wyeth released their own generic version of the drug, in hopes of keeping some of the market share they would have lost due to generic competition. Near the end of this year, Teva and Sun Pharma had received approval to launch a generic version of Protonix.
The drug had sales of $2.5 billion in 2007, according to Wyeth.