Noven Pharmaceuticals, Inc. has agreed to acquire JDS Pharmaceuticals, LLC for approximately $125 million in cash and take on approximately $10 million in liabilities. JDS is a privately-held specialty pharmaceutical company that currently markets two branded prescription psychiatry products and has in its pipeline potential products in psychiatry and women’s health.

The acquisition provides Noven with two marketed products, a next-gen psychiatric pipeline that includes one pending NDA and one product in Phase III trials, and a product entering Phase III for vasomotor symptoms associated with menopause.

The transaction closing, subject to customary closing conditions, is expected by early August.

“This is a transformational acquisition that expands our business model,” said Robert C. Strauss, Noven’s president, chief executive officer and chairman. “The transaction advances Noven from a leading drug delivery company to a broader-based, fully-integrated specialty pharmaceutical company. We believe it will increase Noven’s growth rate over the longer term, as well as greatly improve the visibility of our pipeline and financial goals.”

Phillip M. Satow, chief executive officer and co-founder of JDS, said, “At JDS, we have assembled a highly-experienced management team, a solid sales force with two marketed products, and a valuable new product pipeline. By joining with the expertise and resources of Noven, we believe we can accelerate development of our psychiatry business, independently develop Mesafem in women’s health, and more rapidly achieve the vision that we have been working toward at JDS.”

Following closing, Mr. Satow is expected to join Noven’s board of directors. After 15 years with Pfizer and three years as vice president and general manager of the Carter Wallace pharmaceutical business, Mr. Satow served as executive vice president of Forest Laboratories and president of its pharmaceuticals subsidiary. JDS was founded in August 2004 by Mr. Satow and his son, Michael Satow, JDS president and chief operating officer.