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Pfizer to acquire NextWave Pharmaceuticals
October 22nd, 2012
NEW YORK – Pfizer Inc. plans to buy NextWave Pharmaceuticals, a specialty pharmaceutical company that develops medications for attention deficit/hyperactivity disorder (ADHD) and related central nervous system disorders.
Pfizer said Monday that it's exercising its option to acquire NextWave after entering into an option and merger agreement with the company in the second quarter 2012.
With that agreement, Pfizer made an option payment of $20 million, and under the deal announced Monday, Pfizer will make a payment to of $255 million to NextWave shareholders at the close of the transaction, and NextWave shareholders are eligible to receive additional payments of up to $425 million based on certain sales milestones.
NextWave is the developer of Quillivant XR (methylphenidate hydrochloride) for extended-release oral suspension, the first once-daily liquid medication approved in the United States for the treatment of ADHD, and it holds exclusive North American commercialization rights to Quillivant XR, according to Pfizer.
Quillivant XR received approval from the Food and Drug Administration in late September and is due to be rolled out to U.S. pharmacies in January 2013. The drug was developed in collaboration with Tris Pharma, NextWave's technology and manufacturing partner.
"This agreement demonstrates our focused expansion of the Established Products U.S. brands business to offer a diverse portfolio of high-quality medicines that meet patients' needs," stated Albert Bourla, president and general manager in Pfizer's Established Products Business Unit. "By combining the advantages of Quillivant XR with Pfizer's commercialization expertise, we will be able to provide ADHD patients and their caregivers a new treatment option."
The transaction is expected to close in the fourth quarter, pending regulatory approval in the United States and other customary closing conditions.
"NextWave has been focused on helping patients and families who struggle with the challenges of ADHD," said Jay Shepard, president and chief executive officer of NextWave. "We are excited to partner with Pfizer, one of the most respected pharmaceutical organizations in the world, to bring the unique benefits of Quillivant XR to those affected by this challenging condition."