Indivior said Monday it had entered into an agreement to sell its rights to a psychotropic drug in China to Pukang for a total of up to $122.5m.
Terms of the transaction included a signing payment of $1.5m, $3.5m upon designation of the Sai Bo Song tablet as a Class II psychotropic drug by Chinese regulators, and $12.5m upon closing of the transaction, for a total of $17.5m in near-term payments.
Indivior would also receive an additional $105.0m based on certain technical assistance it provided to Pukang and the achievement of certain sales milestones during a ten-year period following the first commercial sale of the product in China, for a total of up to $122.5m.
The foregoing regulatory hurdles was expected to occur throughout 2019 and the transaction was targeted to close by end of fourth quarter of 2019, the company said.
'The divestiture of the Sai Bo Song tablet in China is consistent with Indivior's efforts to prioritize efforts on the long-term growth opportunities with our new depot assets, SUBLOCADE and PERSERIS,' said Shaun Thaxter, Chief Executive Officer of Indivior.
'This transaction helps us focus our resources on the highest return opportunities in the regions we know best, while ensuring patients in China have access to an important and transformational treatment.'