QUEBEC CITY and MONTREAL, March 3 /PRNewswire-FirstCall/ - AEterna Zentaris Inc. (NASDAQ: AEZS;TSX: AEZ), a global biopharmaceutical company focused on endocrine therapy and oncology, and Paladin Labs Inc. (TSX: PLB), a leading Canadian specialty pharmaceutical company, announced today that they have entered into a definitive purchase and sale agreement with respect to all rights related to the manufacture, production, distribution, marketing, sale and/or use of miltefosine for an aggregate purchase price of Cdn$9.125 million payable in cash, subject to certain post-closing purchase price adjustments. Miltefosine, sold under the brand name Impavido(R) throughout the world, recorded revenues of Euro 2.5 million in 2007. Completion of the transactions contemplated by the purchase agreement is subject to customary closing conditions, including the parties having received certain third-party consents and approvals.
David J. Mazzo, Ph.D., President and CEO of AEterna Zentaris commented, "Last fall, we put forth our new focused business strategy which included identifying non-core assets and actively seeking to divest them as a way to infuse non-dilutive funds into the Company. We are very pleased to have entered into an agreement for the sale of the compound, miltefosine, and look forward to consummating the deal in the near future."
"This transaction marks the first time that Paladin has acquired international rights to a patented, medically important product", said Jonathan Ross Goodman, President and CEO of Paladin Labs. "This transaction is expected to be immediately accretive to earnings and it fits within our broader strategy to grow Paladin's revenues beyond the Canadian border."
|SOURCE AETERNA ZENTARIS INC.|
Copyright©2008 PR Newswire.
All rights reserved