Vernalis acquires rights to Pragma's MOXATAG treatment

2nd Oct 2015 16:31

(ShareCast News) - Pharmaceutical group Vernalis has completed the acquisition of the US rights to the amoxicillin extended-release tablet brand MOXATAG from Pragma Pharmaceuticals.The London-listed company said it has made an undisclosed up-front payment in cash for the rights, with a further payment to be submitted upon the successful production of a re-launched finished dose product, which it expects to be completed by the start of 2016.Vernalis added the deal will not impact its cash resources, indicating it will assume control of the supply chain and will pay Pragma royalties on net sales and further potential sales-related achievements in the futureThe tablet, which is used to treat tonsillitis and pharyngitis, is the first and only approved once-daily formulation of the amoxicillin antibiotic, Vernalis said on Friday."The acquisition of MOXATAG is another important step in our transition to a commercial specialty pharmaceutical company," said group chief executive Ian Garland."We are delighted that we have been able to quickly expand our primary care product portfolio and leverage our newly established US commercial infrastructure."Vernalis shares were up 0.97% to 78.00p at 1630 BST on Friday.