Savient agrees to sell testosterone product Delatestryl to Indevus for $5 million, share of sales

By E. Janene Geiss

Philadelphia, Dec. 13 - Savient Pharmaceuticals, Inc. said Tuesday that the company has agreed to sell its injectable testosterone product Delatestryl for male hypogonadism to Indevus Pharmaceuticals Inc.

The transaction has been approved by the boards of directors of both companies and is expected to close early in 2006, according to a company news release.

Under the terms of the agreement, Indevus will pay Savient an initial payment of $5 million and a portion of net sales of the product for the first three years based on an escalating scale, officials said.

If sales remain at current levels for the next three years, additional net sales payments could equal about $2 million.

Additionally, Indevus will buy Savient's inventory of finished product for three installments totaling $1.9 million. Indevus will also assume some future obligations under the agreement with the third party contract manufacturer for the product, officials said.

"The sale of Delatestryl to Indevus represents another step forward in our corporate strategy to become a world-class specialty pharmaceutical company with a focus in rheumatology," said Christopher Clement, president and chief executive officer of Savient, in the release.

The company said it plans to better focus efforts on rheumatology product Puricase for severe gout, which will start its phase 3 clinical trials in early 2006.

Last month, Savient presented final phase 2 data that demonstrated the benefit of Puricase in immediate reduction of hyperurecemia and dramatic reduction of tophi at the American College of Rheumatology meeting in San Diego.

Based in East Brunswick, N.J., Savient is a specialty pharmaceutical company dedicated to developing, manufacturing and marketing novel therapeutic products that address unmet medical needs.

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