Theratechnologies, Merck KGaA deal

Theratechnologies will regain U.S. rights to Egrifta tesamorelin from Merck's EMD Serono Inc. subsidiary for $20 million after the partners agreed to terminate their 2008 deal. Theratechnologies will pay the $20 million in equal payments to Merck over a five-year period beginning on the closing date of the termination, which is expected during Theratechnologies' fiscal 2Q14 ending May 31. Starting in 2016, Merck is eligible for undisclosed, increasing royalties that will be paid up until a certain amount is reached or until Jan. 1, 2024. Theratechnologies said that regaining U.S. rights to Egrifta will add C$8-C$13 million ($7.6-$12.3 million) to EBIT during the first year after the close of the deal. The companies could not be reached for details (see BioCentury, Nov. 3, 2008). ...