Assertio Therapeutics Announces Sale of NUCYNTA® Franchise to Collegium Pharmaceutical for $375.0 Million
February 06 2020 - 4:01PM
Assertio Therapeutics, Inc. (“Assertio” or the “Company”) (NASDAQ:
ASRT), today announced it has entered into a definitive
agreement (“Agreement”) with Collegium Pharmaceutical, Inc.
(“Collegium”) pursuant to which Collegium will acquire the
NUCYNTA
® franchise of products from the Company.
The closing of the agreement is expected by February 14, 2020.
Under the terms of the agreement, Collegium will pay Assertio
$375.0 million in cash at closing, less royalties paid to Assertio
in 2020. Collegium will also pay Assertio for certain inventories
and equipment relating to the products. The Company intends to use
cash proceeds retire its outstanding debt.
“A key element of Assertio’s transformation over the last
several years has been its focus on aggressive de-leveraging. We
have done that successfully by consistently delivering strong
bottom line performance and today we look to end that journey. With
this transaction, our goal is to retire our outstanding debt and
have approximately $50.0 million of cash on our balance sheet. We
will use this new flexibility to pursue business development,
strategic partnerships and investment opportunities with the goal
of having our remaining business becoming cash flow and EBITDA
positive by the end of the year,” said Arthur Higgins, President
and Chief Executive Officer of Assertio.
“We have enjoyed a great commercial partnership with Collegium
and it became clear that they would be the ideal long-term home for
the NUCYNTA® franchise, given their position as the leader in
responsible pain management and the synergistic fit of the NUCYNTA®
franchise in their portfolio.”
Stifel acted as exclusive financial advisor to Assertio in this
transaction and Gibson, Dunn & Crutcher LLP and Greenberg
Traurig LLP served as legal counsel.
The Company is also announcing that it is no longer pursuing the
development of long-acting cosyntropin. Based on discussions with
our partner West Therapeutic Development, Inc., the Company has
determined that development of this asset is no longer feasible in
a timely manner.
Additional details can be found in the Company’s Form 8-K filed
with the Securities and Exchange Commission.
About NUCYNTA® and NUCYNTA®
ER
NUCYNTA® is a strong prescription pain medicine
that contains an opioid (narcotic) that is used to manage
short-term (acute) pain in adults when other pain treatments, such
as non-opioid pain medicines, do not treat your pain well enough or
you cannot tolerate them.
NUCYNTA® ER is a strong prescription pain
medicine that contains an opioid (narcotic) that is used to manage
pain severe enough to require daily, around-the-clock, long-term
treatment with an opioid when other pain treatments, such as
non-opioid pain medicines or immediate-release opioid medicines, do
not treat your pain well enough or you cannot tolerate them.
About Assertio Therapeutics, Inc.
Assertio Therapeutics is committed to providing responsible
solutions to advance patient care in the Company’s core areas of
neurology, orphan and specialty medicines. Assertio currently
markets two FDA-approved products and continues to identify,
license and develop new products that offer enhanced options for
patients that may be underserved by existing therapies. To learn
more about Assertio, visit www.assertiotx.com.
About Collegium Pharmaceutical,
Inc.
Collegium is a specialty pharmaceutical company committed to
being the leader in responsible pain management. Collegium’s
headquarters are located in Stoughton, Massachusetts. For more
information, please visit the company’s website at
www.collegiumpharma.com.
About West Therapeutic Development, LLC
West Therapeutic Development is U.S. based and part of the MMB
Healthcare group. The group are biopharmaceutical companies focused
on improving patient health and addressing unmet medical needs by
acquiring, developing, manufacturing and commercializing specialty
pharmaceutical products in niche orphan disease and specialty
market segments. To learn more about West Therapeutic Development,
visit www.mmbhealthcare.com.
"Safe Harbor" Statement Under the
Private Securities Litigation Reform Act of 1995
This news release contains forward-looking
statements. These statements involve inherent risks and
uncertainties that could cause actual results, including for 2019,
to differ materially from those estimated, projected or
anticipated, including expectations regarding the closing of the
sale of the NUCYNTA® franchise to Collegium
Pharmaceutical, Inc., the repayment of the Company’s indebtedness,
expectations regarding potential business opportunities, and other
risks outlined in the Company's public filings with the Securities
and Exchange Commission, including the Company's most recent annual
report on Form 10-K and subsequent Quarterly Reports on Form 10-Q.
All information provided in this news release speaks as of the date
hereof. Except as otherwise required by law, the Company undertakes
no obligation to update or revise its forward-looking
statements.
Investor and Media Contact: Dan Peisert Senior
Vice President and Chief Financial
Officerdpeisert@assertiotx.comSource: Assertio Therapeutics,
Inc.
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