St. Louis Business Journal by Greta Weiderman, Web Editor
Date: Monday, December 10, 2012, 4:34pm CST
KV Pharmaceutical has agreed to pay Bedford, Mass.-based drug firm Hologic Inc. $60 million to settle a dispute over rights to the premature-birth drug Makena, which Hologic sold to KV, according to afiling Monday with the Securities and Exchange Commission.
When KV filed for bankruptcy Aug. 4, itfailed to make a $95 million payment it owed Hologic, which developed the drug. KV agreed to pay Hologic (Nasdaq: HOLX) close to $200 million for “orphan drug” status and to exclusively sell the branded drug for seven years.
Hologic claimed that the value of its interests in the Makena assets were subject to decline and that such interests were not adequately protected. Hologic had filed a proof of claim in the bankruptcy case asserting a claim against KV for $95 million plus certain royalties allegedly owed to Hologic under the asset purchase agreement.
Consummation of the settlement agreement is dependent on KV and its subsidiaries obtaining a debtor in possession (DIP) financing facility and Hologic being paid in full on or prior to Dec. 31. If the bankruptcy court approves the settlement agreement and the DIP facility, and Hologic is paid, all of Hologic’s claims against KV and its subsidiaries, and all of the KV and its subsidiaries’ claims against Hologic, will be released.
Bridgeton-based KV Pharmaceutical (OTCQB: KVPHA/KVPHB) reported a net loss of $102 million on revenue of $23 million for its fiscal year ended March 31.
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