Warner Chilcott returns rights to Leo Pharma for $1B

Leo Pharma will reacquire the licensing rights to its topical psoriasis treatments from Warner Chilcott for about $1 billion, the two drugmakers announced today. The deal, which is expected to be completed today, will result in a one-time gain of roughly $450 million and net Warner $980 million in cash.

Under the agreement, Leo will regain the rights to Taclonex, Taclonex Scalp, Dovonex and all products in the developer's pipeline. Warner will continue to market the drugs for Leo through the end of the year and assist with the transition for up to a year.

Warner says it will use the funds to repay and terminate its senior secured facilities and finance the acquisition of Proctor & Gamble's pharma division. Leo will use the deal--its largest ever--to diversify into the U.S. market. The developer has already launched a headquarters in New Jersey.

- here's the release