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ARTICLE | Company News

Horizon acquiring U.S. Vimovo rights from AstraZeneca

November 20, 2013 3:18 AM UTC

Horizon Pharma Inc. (NASDAQ:HZNP) will acquire U.S. rights to Vimovo naproxen/esomeprazole from AstraZeneca plc (LSE:AZN; NYSE:AZN) for $35 million in cash up front. Horizon will take over U.S. commercialization of Vimovo from AstraZeneca and ongoing U.S. patent litigation for the drug. AstraZeneca, which will retain ex-U.S. rights to Vimovo, is partnered to develop and commercialize the product with Pozen Inc. (NASDAQ:POZN) under a 2006 deal. Under Tuesday's deal, Pozen remains eligible for 10% royalties on net U.S. sales of Vimovo, with a minimum royalty payment of $5 million in 2014 and $7.5 million afterwards so long as there are no generic versions of Vimovo on the U.S. market.

In 2012, AstraZeneca recorded $65 million in worldwide Vimovo sales, including $25 million in U.S. sales. The fixed-dose combination of naproxen and esomeprazole, a proton pump inhibitor, is approved in the U.S. to treat signs and symptoms of osteoarthritis, rheumatoid arthritis (RA) and ankylosing spondylitis; and to decrease the risk of developing gastric ulcers in patients at risk of developing NSAID-associated gastric ulcers. JMP Securities advised Horizon. ...