H. Lundbeck A/S (Lundbeck) today announced that the company has entered into an agreement with Akorn Inc. (Akorn) whereby Akorn has acquired a portfolio of products comprising Nembutal® (pentobarbital sodium injection, USP), Cogentin® (benztropine mesylate injection) and Intravenous Sodium Diuril® (chlorothiazide sodium). This transaction is part of Lundbeck's long-term strategy to focus on newer, strategic products in its portfolio. As part of the agreement, Akorn will continue with Lundbeck's restricted distribution programme for Nembutal®, which was implemented to restrict the use of the product in the US.
The three products became part of Lundbeck's product portfolio through the acquisition of Ovation Pharmaceuticals, Inc. in 2009, and the medicines have never been of strategic importance to Lundbeck. Moving forward, Lundbeck will focus on newer therapies within its product portfolio that predominantly address central nervous system (CNS) disorders. In the coming years, Lundbeck US plans to launch OnfiTM for the treatment of Lennox-Gastaut syndrome, aripiprazole depot formulation for the treatment of schizophrenia and Lu AA21004 for the treatment of major depressive disorder.
"The US market is a key growth driver for Lundbeck. This transaction allows us to focus on newer, strategic products with significant revenue potential, such as OnfiTM, aripiprazole depot and Lu AA21004," says Ulf Wiinberg, President & Chief Executive Officer at Lundbeck.
Under the terms of the agreement, Akorn has acquired and retains all of Lundbeck's rights and responsibilities for the manufacturing, distribution and sale of the three products included in the agreement. The agreement concerns Lundbeck's US rights for Nembutal® and global rights, including US, for Cogentin® and Diuril®..
According to the agreement, Akorn will upfront and as a milestone payment after three years pay a maximum of $60 million in cash. Lundbeck will not receive any royalties based on future Nembutal® sales. The transfer of the product portfolio is immediate, although certain filings will still need to be made with the applicable regulatory authorities to reflect the transfer. For a specified time period, Lundbeck will perform certain services on behalf of Akorn to ensure that these products will continue to be available to meet the unmet medical needs of patients.
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