FORT LAUDERDALE, Fla. -- Andrx Corporation (Nasdaq:ADRX) ("Andrx") today announced that it has completed its previously announced sale and licensing of certain rights and assets related to its Fortamet(R) and Altoprev(R) brand pharmaceutical products to First Horizon Pharmaceutical(R) Corporation ("First Horizon").
Andrx received $50 million for Fortamet at the closing. Andrx is entitled to receive up to $35 million in additional proceeds for Altoprev, once it achieves certain defined manufacturing service levels for this product set forth in the agreement. Andrx expects to receive $23.3 million of such amount in connection with the first such delivery scheduled for this week. Andrx will also receive royalties on net sales, as defined, of 8% on Fortamet and 15% on Altoprev.
Thomas P. Rice, Andrx's Chief Executive Officer, said, "We are extremely pleased to complete this transaction with First Horizon and are confident that they are the right organization to optimize the value of the Fortamet and Altoprev products for the benefit of both our companies. Our future financial results will not be burdened by the significant operating losses that we experienced in the brand business. This transaction will also better allow us to re-focus our efforts and resources on our core strengths of formulation development of generic controlled-release pharmaceuticals and distribution for the benefit of our shareholders."
About Andrx Corporation:
We are a pharmaceutical company that develops, manufactures and commercializes generic versions of controlled-release, niche and immediate-release pharmaceutical products, including oral contraceptives. We also distribute pharmaceuticals, primarily generics, which have been commercialized by others, as well as our own, primarily to independent pharmacies, pharmacy chains, pharmacy buying groups and physicians' offices.
Forward-looking statements (statements which are not historical facts) in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. For this purpose, any statements contained herein or which are otherwise made by or on behalf of the Company that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the generality of the foregoing, words such as "may," "will," "to," "plan," "expect," "believe," "anticipate," "intend," "could," "would," "estimate," or "continue" or the negative other variations thereof or comparable terminology are intended to identify forward-looking statements. Investors are cautioned that all forward-looking statements involve risk and uncertainties, including but not limited to, the Company's ability to meet the supply and manufacturing requirements of the First Horizon agreement, the Company's dependence on a relatively small number of products, licensing revenues, the timing and outcome of litigation and future product launches, government regulation, competition, and manufacturing results. Andrx Corporation is also subject to other risks detailed herein or detailed from time to time in its filings with the U.S. Securities and Exchange Commission. Andrx disclaims any responsibility to update the statements contained herein.
This release and additional information about Andrx Corporation are also available on the Internet at: http://www.andrx.com.
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