Cornerstone Therapeutics has acquired a privately-held specialty pharmaceutical company focused on the acute-care hospital setting, EKR Therapeutics.
As part of the merger, Cornerstone will assume the responsibility to market and promote Cardene I.V. (nicardipine hydrochloride) and Retavase (Reteplase).
As part of the agreement Cornerstone has merged EKR Therapeutics by an initial cash payment of $125m and additional payments to be paid on reaching certain pre determined targets.
Following the acquistion, Cornerstone awaits FDA approval and relaunch of Retavase to the market in 2013.
Cornerstone CEO Craig A.Collard said they expect the combination of Cornerstone and EKR will generate synergies, while the addition of the EKR sales force will significantly expand their reach in the US hospital market.
''We believe this transaction delivers on our promise to transform Cornerstone into a leading specialty pharmaceutical company that provides hospital and related specialty market products," Craig added.
Cornerstone also entered into a five-year term loan A of $60m and term loan B of $30m with Chiesi Farmaceutici, Cornerstone's largest shareholder.
Cornerstone chief financial officer Vincent T. Morgus said, "We believe the terms of the credit arrangement with Chiesi are favorable to Cornerstone when compared to financing alternatives that may be available to us in the public markets."
