WILMINGTON,aaiPharma Inc.has agreed to acquire a portfolio of pain management products from Elan Corp. for $100 million, to be paid at closing.
These products consist of three brands of pain products: Roxicodone tablets and oral solutions, Oramorph tablets, and Roxanol oral solutions. The products produced some $60 million in revenue for Elan last year.
aaiPharma has also agreed to acquire a non-scheduled pain management product, Duraclon from Elan, which has been struggling financially, as part of the same transaction.
The company (Nasdaq: AAII) also reported a 16 percent increase in revenues in the third quarter to $71 million as compared to a year ago. Earnings were 31 cents per share. Revenues for the first nine months of the year are up 22 percent over last year.
aaiPharma also recently launched Darvocet A500, its first major pharmaceutical launch.
Upon completion of the transaction, Roxicodone, Oramorph, and Roxanol will mark aaiPharma’s first foray into the oral Schedule II class of pain management products.
These products are complementary to aaiPharma’s existing Darvon/Darvocet portfolio of Schedule IV pain products, the company says.
“These products are an excellent fit with our current sales and promotion focus and, upon completion of the transaction, will provide us added depth in the $4.5 billion moderate to severe pain category,” said Philip Tabbiner, president and CEO of aaiPharma, which is based in Wilmington and has a large operation in Chapel Hill, NC.