Headquartered in Cary, NC, Cornerstone Therapeutics is a specialty pharmaceutical company focused on commercializing products for the hospital, niche respiratory, and related specialty markets.
As part of the acquisition, Cornerstone Therapeutics assumes responsibility(s) for the following medicines:
• CARDENE® I.V. (nicardipine hydrochloride): Cornerstone Therapeutics will immediately assume responsibility for marketing and promotion of CARDENE® I.V., a medicine indicated for the short-term treatment of hypertension as an alternative to oral therapy treatments.
• RETAVASE® (Reteplase): Cornerstone Therapeutics is targeting FDA approval of a new active ingredient supplier and plans to relaunch RETAVASE to the market in 2013. RETAVASE is a medicine indicated for use in the management, improvement of ventricular function, and reduction of incidences of congestive heart failures related to the condition of acute myocardial infarction (AMI) in adults.
“We believe this transaction delivers on our promise to transform Cornerstone into a leading specialty pharmaceutical company that provides hospital and related specialty market products,” said Craig A. Collard, Cornerstone’s Chief Executive Officer. “We expect that the combination of Cornerstone and EKR will generate synergies, while the addition of the EKR sales force will significantly expand our reach in the U.S. hospital market. With the launch of CRTX 080 (lixivaptan) and the relaunch of RETAVASE in 2013, our sales force will be actively promoting four products within the hospital channel. From a revenue growth perspective, we believe that annualized sales from CARDENE I.V. could exceed $50 million.”
Collard added, “Lixivaptan is under review by the FDA for the treatment of hyponatremia, which is a common condition in patients with heart failure. With the acquisition of EKR and specifically, CARDENE I.V., we have the opportunity to strengthen our existing relationships within the cardiology community as we prepare for the approval and launch of lixivaptan.”
Terms of the acquisition agreement include:
• An initial cash payment of approximately $125 million.
• Additional payments contingent upon the achievement of certain milestones related to regulatory approval of a new active ingredient supplier for RETAVASE and sales of RETAVASE during approximately the first three years following commercial relaunch.
• A credit agreement with Chiesi Farmaceutici, S.p.A., its largest shareholder, in which Chiesi is providing a five-year Term Loan A of $60 million and a five-year Term Loan B of $30 million. The Term Loan B may be converted into common stock of Cornerstone at $7.098 per share at Chiesi’s option at any time during the first 24 months following the closing of the credit arrangement.
“We believe the terms of the credit arrangement with Chiesi are favorable to Cornerstone when compared to financing alternatives that may be available to us in the public markets,” said Vincent T. Morgus, Cornerstone’s Chief Financial Officer. “More importantly, we believe our ability to access Chiesi as a financing source will continue to help us capitalize on new potential growth opportunities.”
For more information, visit www.crtx.com
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