Pfizer is considering buying NextWave Pharmaceuticals, a company that develops a liquid attention deficit hyperactivity disorder drug.
In the second quarter of 2012, Pfizer signed an option and merger agreement with NextWave and made a $20m option payment.
At present Pfizer is executing its option to take over NextWave.
Pursuant to the terms of the deal, NextWave's shareholders will receive $255m at the closing of the transaction, which is subject to regulatory approval in the US and other customary closing conditions and is expected during the fourth-quarter 2012.
NextWave's shareholders are also entitled to earn around $425m up on reaching certain sales milestones.
Pfizer established products business unit president and general manager Albert Bourla said, "By combining the advantages of Quillivant XR with Pfizer's commercialization expertise, we will be able to provide ADHD patients and their caregivers a new treatment option."
Jefferies & Company was the financial advisor for the transaction for Pfizer while Kaye Scholer LLP and Ropes & Gray LLP acted as legal counsel.
Aquilo Partners acted as financial advisor for the transaction for NextWave, while Cooley LLP served as its legal advisor.
NextWave president and chief executive officer Jay Shepard said, "NextWave has been focused on helping patients and families who struggle with the challenges of ADHD."
