Elan has agreed to sell four pain products and related assets to aaiPharma Inc which will see the firm recieve $100m on completion of the deal.
This consideration is made up of a cash payment of $51.6m including an estimated $3m for product inventory.
The products include the rights to Roxicodone tablets and oral solution, Oramorph tablets, Roxanol and Duraclon.
aaiPharma will acquire the product inventory from Elan at closing and consequently the $3m estimated value may be subject to change.
In addition, aaiPharma will assume $51.4m of Elan's product related payments.
Elan's chief executive Kelly Martin said, 'The proceeds from the sale of these pain products are part of our previously announced asset divestiture plan and overall plan to simplify and refocus the company. With the sale, total asset divestitures come to nearly $1.9 billion. Elan remains committed to research and development in specialty treatments for severe pain.'In 2002 Elan made net revenue of $59.8m for these pain products and generated gross profit of $40.8m, before sales and marketing costs and amortisation.
