Generic drugmaker Perrigo Co (PRGO.O) bought the marketing application of KV Pharmaceuticals Inc (KVa.N) (KVb.N) to market a copycat version of GlaxoSmithKline's (GSK.L) (GSK.N) acne treatment Duac for an upfront payment of $14 million.
Perrigo's move to buy the additional new drug application (ANDA) for the generic version gives the embattled drugmaker KV Pharmaceuticals its second respite this month.
On Sept. 2, the U.S. Food and Drug Administration, which had restrained KV Pharma from manufacturing and shipping any of its drugs, accepted the company's work plan to address previously identified deficiencies in manufacturing practices.
KV Pharma, which has taken up a slew of restructuring activities since the beginning of the year, had earlier expressed significant doubt about its ability to continue as a going concern during the coming fiscal year.
However, selling its marketing application for a copycat version of Duac, in a deal that included $2 million in milestone payments, also lifted off expenses from a lawsuit filed by a GlaxoSmithKline unit.
Perrigo has assumed responsibility for the litigation and will immediately begin working on the transfer of production to a Perrigo site with the intention to amend the ANDA accordingly. Shares of KV Pharmaceuticals rose 4 percent to $3.09 in early trade on the New York Stock Exchange. Perrigo shares were up 1 percent at $32.25 on Nasdaq. (Reporting by Vidya L Nathan in Bangalore; Editing by Mike Miller)
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