4th Feb 2019 08:09
LONDON (Alliance News) - Indivior PLC on Monday said it will divest its interest related to the Sai Bo Song tablet in China to the Zhejiang Pukang Biotechnology Co Ltd for a maximum of USD122.5 million.
Indivior shares were trading up 3.1% at 118.45 pence each early Monday morning.
Furthermore, the FTSE 250 drugmaker said it has entered into a deal with Alvogen Pine Brook LLC enjoining it from selling in the US its generic buprenorphine and naloxone sublingual film products, competing with Indivior's opioid addiction treatment Suboxone.
Suboxone accounts for around 80% of Indivior's revenue.
Indivior had been granted a temporary restraining order by the US District Court for the District of New Jersey against Alvogen on January 24. The order will will remain in place until February 7, when a preliminary injunction hearing will take place.
Commenting on the Chinese divestment, Indiviour Chief Executive Officer Shaun Thaxter said: "This transaction helps us focus our resources on the highest return opportunities in the regions we know best, while ensuring patients in China have access to an important and transformational treatment."
The term of the agreement include a signing payment of USD1.5 million, USD3.5 million upon designation of the Sai Bo Song tablet as a Class II psychotropic drug by Chinese regulators, and USD12.5 million upon closing of the transaction.
Indivior may receive an additional USD105.0 million based on technical assistance to be provided to Pukang and the achievement of sales milestones during a ten-year period.
The company said it expects the deal to complete in the fourth quarter of 2019.
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