TORONTO, ONTARIO--(Marketwire -03/07/12)- Merus Labs International Inc. ("Merus" or the "Company") (TSX: MSL.TO - News)(NASDAQ: MSLI - News) is pleased to announce that it has completed the acquisition of the North American product rights for FACTIVE® (Gemifloxacin Mesylate) tablets from Cornerstone Therapeutics Inc. ("Cornerstone") (NASDAQ: CRTX - News). Cornerstone recorded FACTIVE® 320mg tablet net sales of approximately US$6.3 million in the United States for 2011. The Product has not been commercialized in Canada.
The Company acquired FACTIVE® for total consideration, as a multiple of Product cash flow, fully paid at closing. Other financial terms of the acquisition were not disclosed. Pursuant to the acquisition, Merus acquired the license to the FACTIVE® trademark and patent, inventory on hand, and certain related intellectual property and other information and materials required to continue marketing the brand in the North American market. Merus has also entered into a sales and promotion agreement for FACTIVE® with Vansen Pharma Inc. ("Vansen") to market the product in the United States.
FACTIVE® is the only FDA-approved quinolone with 5-day oral dosing indicated for the treatment of both acute bacterial exacerbation of chronic bronchitis and mild to moderate community-acquired pneumonia. "FACTIVE® marks our entry into the United States specialty pharma market and the second addition to Merus' prescription pharmaceutical product portfolio," said Ahmad Doroudian, Chief Executive Officer. "We look forward to the anticipated growth of the FACTIVE® brand in the United States and expansion of our product portfolio in the near future."
In addition to the acquisition announcement, the board of directors of the Company is pleased to announce that on July 12, 2012, Mr. Elie Farah, the current President of the Company, will succeed Ahmad Doroudian as the Chief Executive Officer of the Company. At that time, Ahmad Doroudian will assume the position of Executive Vice-Chairman with specific business development and operational duties and will remain on the board of directors. "I am very pleased with the implementation of the CEO succession plan and look forward to Mr. Farah leading the Company through its next stage of anticipated growth in the coming years," said Ahmad Doroudian, Chief Executive Officer.
About Merus Labs International Inc.
Merus is a specialty pharmaceutical company engaged in the acquisition and licensing of pharmaceutical products. The Company utilizes its expertise in the North American pharmaceutical markets and its access to capital to acquire and license niche branded products in Canada and United States. Merus further enhances the sale and distribution of these products by introduction of a focused marketing and promotion plan.
About Cornerstone Therapeutics Inc.
Cornerstone Therapeutics Inc. (NASDAQ: CRTX - News), headquartered in Cary, N.C., is a specialty pharmaceutical company focused on commercializing products for the hospital, niche respiratory and related specialty markets. Key elements of Cornerstone's strategy are to focus its commercial and internal development efforts in the hospital and related specialty product sector within the U.S. pharmaceutical marketplace; continue to seek out opportunities to acquire companies and marketed and/or registration-stage products that fit within Cornerstone's focus areas; and generate revenues by marketing approved generic products through Cornerstone's wholly-owned subsidiary, Aristos Pharmaceuticals, Inc.
This press release may contain forward-looking statements that involve risks and uncertainties. These statements relate to future events or the Company's future financial performance and include statements relating to the appointment of Mr. Farah as the Company's Chief Executive Officer on July 12, 2012, the growth of the FACTIVE® brand, the expansion of the Company's product portfolio, and the anticipated growth of the Company. While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect the Company's current judgment regarding the direction of its business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggested in this report. Except as required by applicable law, the Company does not intend to update any of the forward-looking statements so as to conform these statements to actual results. Investors should refer to the risks disclosed in the Company's reports filed from time to time with securities regulatory authorities.