Sciele Pharma Acquires Twinject(R) Epinephrine Auto-Injector from Verus Pharmaceuticals
Atlanta, GA–Sciele Pharma, Inc. (NASDAQ:SCRX) (”Sciele” or “the Company”) today announced that it has acquired from Verus Pharmaceuticals, Inc. (”Verus”) the Twinject(R) epinephrine auto-injector (epinephrine injection, USP 1:1000) for the treatment of severe allergic reactions and anaphylaxis. Under the agreement, Sciele acquired Twinject and certain other related Verus products under development for $29 million. Verus may also receive additional payments resulting from the achievement of certain development milestones. Sales in the auto-injectable epinephrine market have increased by 17% per year over the past five years and totaled approximately $200 million in 2007, according to IMS Health(R) NPA data.
Anaphylaxis is a sudden, severe, and potentially life-threatening allergic reaction triggered by exposure to one or more allergens, including foods, insect stings, drugs, and latex products. Up to 43 million people in the U.S. alone are at risk for anaphylactic episodes, and underlying incidence rates of food-based allergies are increasing. Up to eight percent of children have food allergies, and sensitivities to peanuts and tree nuts among children have doubled in the past five years.
Twinject is available in 0.3 and 0.15 milligram dosage strengths and is indicated in the emergency treatment of severe allergic reaction including anaphylaxis to stinging and biting insects, allergen immunotherapy, foods, drugs, diagnostic testing substances, and other allergens, as well as anaphylaxis to unknown substance or exercise-induced anaphylaxis. Twinject is the only available product approved by the FDA that contains two doses of epinephrine in a single, compact device. This is an important feature, as one out of three reactions may require more than one dose of epinephrine, with the second dose often needed within 10 minutes after the first dose.
Commenting on the announcement, Patrick Fourteau, Chief Executive Officer of Sciele Pharma, Inc., said, “The agreement with Verus allows us to further diversify our product portfolio by adding another new launch to our growing pediatric line. Sciele continues its business development strategy to leverage our sales force, enhance our product portfolio, and provide additional revenue and earnings growth.”
“At Verus, we have been committed to providing innovative solutions for anaphylaxis patients and their caregivers,” added Robert W. Keith, President and Chief Executive Officer of Verus. “We are very pleased to complete this transaction with Sciele, a company with significant sales and marketing capabilities, which should help broaden and strengthen Twinject’s market reach for the treatment of patients at risk for this life-threatening condition.”
As a result of this acquisition and the previously announced agreement with sanofi-aventis to market Allegra ODT, Sciele is increasing its revenue and earnings guidance for 2008. Revenues are now expected to increase between $7 million to $15 million to $447 million-$470 million, and earnings per share are expected to increase between $0.02 to $0.04 to $1.99-$2.11 per share. This guidance for 2008 assumes an R&D expenditure rate of approximately 8% of revenues and does not include any unapproved products or any potential additional restructuring charges related to the new Sular conversion.
More information about anaphylaxis and Twinject is available at www.twinject.com. Verus Pharmaceuticals(R) is a registered trademark of Verus Pharmaceuticals, Inc.
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