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UPDATE 1-Biovail to buy Huntington's disease drug rights

May 18th, 2009 by Valerie Chavez

* To pay $200 mln to Cambridge Labs for global rights

* Says to pay $30 mln more over 2 years

* Deal to add to rev, margins; boost GAAP net in 2010

May 18 (Reuters) - Biovail Corp (BVF.TO) said it agreed to
acquire worldwide rights to tetrabenazine drug to treat chorea
associated with Huntington's disease from Cambridge
Laboratories (Ireland) Ltd for $200 million.

The Canadian drugmaker will also pay an additional $30
million in two tranches over two years to acquire the worldwide
development, manufacturing, and marketing rights to the
tetrabenazine product portfolio, it said.

The deal will immediately add to its revenue, margins and
cash flows and moderately add to its GAAP earnings per share in
2010, Biovail said in a statement.
Tetrabenazine, marketed under Xenazine and Nitoman brands, is
used to ease symptoms of Huntington's disease, an incurable
neurological disorder that can cause uncontrollable movements.

The acquisition includes a controlled-release formulation
of tetrabenazine in development for Tourette Syndrome, as well
as a tetrabenazine-derived new chemical entity that may enter
mid-stage clinical development in the next 12 months, the
company said.

Tetrabenazine tablets in Canada are marketed under the
Nitoman brand name by the Biovail Pharmaceuticals Canada sales
force. In the United States, the tablets are being sold under
the brand name Xenazine and has an orphan drug status through
August 2015.

Biovail shares were up 9 Canadian cents at C$12.89 in early
morning trade Monday on the Toronto Stock Exchange.
(Reporting by Shailesh Kuber in Bangalore; Editing by
Gopakumar Warrier)




LINK: http://www.reuters.com/article/mergersNews/idUSBNG35776220090518