This transaction, which totals of 62.5 million US dollars, implies the sale of drugs: Antabuse, Vivactil, Surmontil and PLD-180, namely Pliva's drug - candidate at the stage I of development for the treatment of ALS (Amyotrophic Lateral Sclerosis also known as Lou Gehrig disease).
Pliva reported on Monday that this move was in line with the company's decision to exit the so-called proprietary segment. Under the agreement, the Croatian company will receive 52.5 million US dollars. Five millions were paid on the occasion of the signing of the agreement, and the rest of 47.5 million will be paid upon the completion of the entire transaction.
Under the same agreement, Pliva will be entitled to an additional of 10 million US dollars after sales goals, regulated by the agreement, are achieved. In the next seven years, the Croatian company will also receive royalties, and the terms and conditions for this section are also stipulated by the agreement.
The completion of the transaction is expected by the end of September this year. This will result in an additional book income of 13.4 million US dollars in the third quarter of this year.
The divestment of Odyssey"s remaining product portfolio is expected to occur within the next few months and is expected to have a positive impact on 2005 earnings.
Pliva CEO Zeljko Covic has said that the funds from such transactions will be invested in the further growth of Pliva's generic performance.