Adolor Corporation Announces Agreement to Acquire Full Ownership of ENTEREG (alvimopan)
June 14 2011 - 4:41PM
Business Wire
Adolor Corporation (NasdaqGM: ADLR) today announced that it has
entered into an agreement with GlaxoSmithKline (GSK) whereby Adolor
will reacquire all rights to Adolor’s FDA-approved product ENTEREG®
(alvimopan). The transaction is expected to close in September
2011. Currently, ENTEREG is co-promoted by Adolor and GSK in the
United States.
“We are thrilled to have an agreement to acquire the rights to
ENTEREG held by GSK,” said Michael R. Dougherty, President and
Chief Executive Officer. “We see continuing revenue growth ahead
for ENTEREG, building upon the solid foundation laid by GSK and
Adolor over the past several years. We expect ENTEREG to generate
meaningful cash flows for Adolor over the next year and into the
future.”
Dougherty continued, “With full ownership of a key hospital
product in ENTEREG and data just ahead from our Phase 2 program
with ADL5945 for the treatment of opioid-induced constipation, we
believe Adolor is well positioned to create compelling strategic
value for our stockholders.”
Under the agreement, Adolor has agreed to pay to GSK $25 million
cash, staged over a six-year period, with $2.5 million payable in
2011, tiered, mid-single digit royalties on annual net sales and a
further one-time, sales-related milestone of $15 million.
“Since 2008, nearly 30 Adolor employees have been focused on the
marketing and selling of ENTEREG to hospitals and physicians,” said
Michael D. Adelman, Vice President, Marketing and Sales. “We have
extensive knowledge of this marketplace, and are excited about the
prospect of now controlling all aspects of the promotional effort.
Over the next several months, we intend to approximately double the
size of our ENTEREG team, and anticipate a smooth transition
working with GSK.”
Conference Call Information
Adolor's management will host a conference call with investors
to discuss this transaction on Wednesday, June 15, 2011, beginning
at 8:30 a.m. ET.
To participate in the audio portion and have the opportunity to
pose questions, dial 800-688-0836 for domestic callers or
617-614-4072 for international callers, and enter Conference ID #
79902094. Investors also can listen to the call live by logging on
to the Company's website at www.adolor.com and clicking
on "Investor Insights," then "Calendar of Events."
A replay of the call will be available beginning approximately
two hours after the event. To listen to a replay of the conference
call, dial 888-286-8010 (domestic) or 617-801-6888
(international) and enter Conference ID # 80030752 or listen via
Adolor's website. The replay will be available for one week.
About ENTEREG
Adolor markets and sells ENTEREG in the United States. ENTEREG
is indicated to accelerate the time to upper and lower
gastrointestinal recovery following partial large or small bowel
resection surgery with primary anastomosis. ENTEREG is available
only for short-term (15 doses) use in hospitalized patients. Only
hospitals that have registered in and met all of the requirements
for the ENTEREG Access Support and Education (E.A.S.E.) program may
use ENTEREG. For more information on ENTEREG, including its full
prescribing information, the Boxed Warning regarding short-term
hospital use and the E.A.S.E.® Program, visit www.ENTEREG.com.
About Adolor
Adolor Corporation is a biopharmaceutical company specializing
in the discovery, development and commercialization of novel
prescription pain and pain management products. The Company's
research and development pipeline includes: ADL5945 and ADL7445,
novel mu opioid receptor antagonists undergoing clinical
development for chronic OIC; and several earlier-stage compounds
under development for the management of pain and CNS disorders.
For more information, visit www.adolor.com.
Forward-Looking Statements
This press release, and oral statements made with respect to
information contained in this release, may contain forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements provide Adolor’s
current expectations or forecasts of future events. These may
include statements regarding market prospects for ENTEREG,
including future revenue growth and whether ENTEREG will generate
meaningful cash flows over the next year and into the future; the
development of potential pharmaceutical products, including
ADL5945; interpretation of clinical results; prospects for
regulatory approvals; anticipated scientific progress on Adolor’s
research programs; and other statements regarding matters that are
not historical facts, including whether Adolor is positioned to
create value for stockholders. You may identify some of these
forward-looking statements by the use of words in the statements
such as “anticipate,” “estimate,” “expect,” “project,” “intend,”
“plan,” “believe” or other words and terms of similar meaning or
that otherwise express contingencies, goals, targets or future
development. These statements are based upon management’s current
expectations and are subject to risks and uncertainties, known and
unknown, that could cause actual results and developments to differ
materially from those expressed or implied in such statements due
to general financial, economic, regulatory and political conditions
affecting the biotechnology and pharmaceutical industries, as well
as more specific risks and uncertainties facing Adolor such as
those set forth in its reports on Forms 8-K, 10-Q and 10-K
filed with the U.S. Securities and Exchange Commission. Adolor
urges you to carefully review and consider the disclosures found in
its filings which are available at www.sec.gov and from Adolor at
www.adolor.com. Given the uncertainties affecting pharmaceutical
companies such as Adolor, any or all of these forward-looking
statements may prove to be incorrect. Therefore, you should not
rely on any such factors or forward-looking statements. Adolor
undertakes no obligation to publicly update or revise the
statements made herein or the risk factors that may relate thereto
whether as a result of new information, future events, or
otherwise, except as may be required by law.
This press release is available on the website
http://www.adolor.com.
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