WOODCLIFF LAKE, N.J., May 7 /PRNewswire-FirstCall/ -- Par Pharmaceutical Companies, Inc. (NYSE: PRX) today announced that it amended its agreement with Spectrum Pharmaceuticals, Inc. (Nasdaq: SPPI) for $20 million in cash to increase its share of profits from the generic versions of GlaxoSmithKline's Imitrex(R) Injection, which will be immediately accretive to 2008 earnings and provide a strong return on the Company's investment. As a result of the agreement, Par's profit share will increase from 38% to 95% from the commercialization of sumatriptan injection. Imitrex Injection (sumatriptan succinate injection) is used for the acute treatment of migraine attacks with or without aura, and the acute treatment of cluster headache episodes. Annual US sales of Imitrex Injection are approximately $220 million, according to IMS Health.
In February 2006, Par entered into a collaborative agreement with Spectrum to develop and market generic drugs, including sumatriptan injection. In November 2006, Spectrum entered into a settlement agreement with GlaxoSmithKline (GSK) that resolved US patent litigation related to GSK's Imitrex Injection. Par is permitted to sell generic versions of the 4mg and 6mg starter kits and the 4mg and 6mg prefilled syringe cartridges with an expected launch date no later than November 2008, which is three months before the compound patent expires in February 2009. Par has also acquired Spectrum's remaining interest for the right to sell the 6mg vials.
"We are pleased to add the full line of sumatriptan injectable products to our generic portfolio," said Paul Campanelli, president of Par's generic division. "Patients suffering from migraines will soon have a familiar and more affordable option available to them."
About Par
Par Pharmaceutical Companies, Inc. develops, manufactures and markets generic drugs and innovative branded pharmaceuticals for specialty markets. For press release and other company information, visit www.parpharm.com.
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Certain statements in this press release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. To the extent any statements made in this news release contain information that is not historical, these statements are essentially forward-looking and, as such, are subject to risks and uncertainties, including the extent and impact of litigation arising out of the accounting issues described in the Company's filings with the Securities and Exchange Commission (SEC), the difficulty of predicting FDA filings and approvals, acceptance and demand for new pharmaceutical products, the impact of competitive products and pricing, new product development and launch, reliance on key strategic alliances, uncertainty of patent litigation filed against the Company, availability of raw materials, the regulatory environment, fluctuations in operating results and other risks and uncertainties detailed from time to time in the Company's filings with the SEC, such as the Company's reports on Form 10-K, Form 10-Q and Form 8-K, and amendments thereto. Any forward-looking statements included in this press release are made as of the date hereof only, based on information available to the Company as of the date hereof, and, subject to any applicable law to the contrary, the Company assumes no obligation to update any forward-looking statements.
SOURCE Par Pharmaceutical Companies, Inc.
