("Nesher"), the Company's wholly-owned generic subsidiary, and the Company's
generic business and assets to Zydus Pharmaceuticals (USA), Inc and Zynesher
Pharmaceuticals (USA) LLC (together, the "Buyer").
The aggregate sales price for the transaction is $60 million (subject to
possible adjustment to reflect the working capital of the business unit at
closing) of which $7.5 million will be held in an escrow arrangement for
post-closing indemnification purposes. The purchase includes the physical
assets associated with the Company's generic business, including certain
manufacturing, packaging and laboratory facilities, certain intellectual
property, existing and future product opportunities, as well as equipment
specific to the generic business.
Separately, the Company has entered into a supply agreement with Zydus
Pharmaceuticals, Inc. to provide third-party manufacturing services for
Clindesse® and Gynazole-1®.
Greg Divis, the Company's Chief Executive Officer and President of Ther-Rx
Corporation, stated, "This divestiture is in-line with our announced efforts
to focus our future product roadmap in the specialty branded pharmaceutical
sector. The net proceeds from the transaction will strengthen our financial
position and liquidity, while exiting the generics business will immediately
reduce our quarterly cash outlays. Moving forward, we will continue working
towards making important progress with Makena(TM), returning our branded
anti-infective products back to market and supporting additional growth
potential for Evamist(TM)."
generic business and assets to Zydus Pharmaceuticals (USA), Inc and Zynesher
Pharmaceuticals (USA) LLC (together, the "Buyer").
The aggregate sales price for the transaction is $60 million (subject to
possible adjustment to reflect the working capital of the business unit at
closing) of which $7.5 million will be held in an escrow arrangement for
post-closing indemnification purposes. The purchase includes the physical
assets associated with the Company's generic business, including certain
manufacturing, packaging and laboratory facilities, certain intellectual
property, existing and future product opportunities, as well as equipment
specific to the generic business.
Separately, the Company has entered into a supply agreement with Zydus
Pharmaceuticals, Inc. to provide third-party manufacturing services for
Clindesse® and Gynazole-1®.
Greg Divis, the Company's Chief Executive Officer and President of Ther-Rx
Corporation, stated, "This divestiture is in-line with our announced efforts
to focus our future product roadmap in the specialty branded pharmaceutical
sector. The net proceeds from the transaction will strengthen our financial
position and liquidity, while exiting the generics business will immediately
reduce our quarterly cash outlays. Moving forward, we will continue working
towards making important progress with Makena(TM), returning our branded
anti-infective products back to market and supporting additional growth
potential for Evamist(TM)."
Companies in this article
