BioCentury
ARTICLE | Company News

MiddleBrook, Deerfield Management Company L.P. deal

November 12, 2007 8:00 AM UTC

Healthcare investment fund Deerfield acquired MBRK's Keflex cephalexin business, excluding Keflex Pulsys, for $7.5 million up front. MBRK has an option to reacquire the assets for $11 million. If MBRK's Amoxicillin Pulsys receives FDA approval, MBRK may require Deerfield to acquire and license assets related to Keflex Pulsys for $2.5 million, and MBRK would have the option to reacquire all cephalexin assets for $14 million. Deerfield also will receive six-year warrants to purchase 3 million shares at $1.38, MBRK's closing price on Nov. 7, the last trading day before the deal was announced.

Deerfield will receive royalties on the Keflex business, which MBRK will continue to operate. Keflex is marketed to treat uncomplicated skin and skin structure infections (SSSIs) and upper respiratory tract infections. MBRK reported Keflex sales of $4.5 million in 1H07 and $4.8 million in 2006. ...