Pfizer will acquire NextWave Pharmaceuticals, a privately held, specialty pharma company focused on ADHD and CNS drugs. NextWave is the developer of Quillivant XR (methylphenidate hydrochloride) for extended-release oral suspension, CII, the first once-daily liquid medication approved in the U.S. for the treatment of ADHD. The company holds exclusive North American commercialization rights to Quillivant XR, which received FDA approval in September 2012, and is expected to be available in U.S. pharmacies in January 2013.
Quillivant XR was developed in collaboration with Tris Pharma, NextWave’s technology and manufacturing partner. Quillivant XR is built on Tris’ OralXR+ platform.
Pfizer had previously entered into an option and merger agreement with NextWave during the second quarter 2012 and made an option payment of $20 million. Pfizer is now exercising its option to acquire NextWave and will make a payment of $255 million to NextWave’s shareholders at the closing of the transaction. The shareholders are eligible to receive additional payments of as much as $425 million based on certain sales milestones.
“This agreement demonstrates our focused expansion of the Established Products U.S. brands business to offer a diverse portfolio of high-quality medicines that meet patients’ needs,” said Albert Bourla, president and general manager in Pfizer’s Established Products Business Unit. “By combining the advantages of Quillivant XR with Pfizer’s commercialization expertise, we will be able to provide ADHD patients and their caregivers a new treatment option.”
The transaction is expected to close during the fourth-quarter 2012, subject to regulatory approval and other customary closing conditions. Pfizer was advised by Jefferies & Co. and NextWave was advised by Aquillo Partners, L.P.