Shares of the biopharmaceutical company VIVUS Inc. (NASDAQ:VVUS) skyrocketed on Tuesday after the company announced that they had entered into an agreement to purchase all rights to PANCREAZE (pancrelipase) Delayed-Release Capsules from Janssen Pharmaceuticals, Inc.
Janssen, a subsidiary of Johnson & Johnson (NYSE:JNJ), will give VIVUS all rights to PANCREAZE capsules in the US and Canada.
VIVUS will purchase PANCREAZE from Janssen for $135 million US and does not have a closing date, as the agreement is subject to the Hart-Scott-Rodino review.
PANCREAZE, which was approved in 2010, is a prescription medication that helps with the treatment of exocrine pancreatic insufficiency (EPI).
Exocrine pancreatic insufficiency is when the body is unable to digest food because the pancreas does not produce enough enzymes and is usually associated with conditions such as cystic fibrosis or chronic pancreatitis.
There is no cure for EPI, and the main treatment of this condition is usually pancreatic enzyme replacement therapy, but PANCREAZE would be able to help with EPI.
According to the CEO of VIVUS Inc. John Amos, has said the company’s “acquisition, coupled with today’s announcement to restructure a portion of [the company’s] convertible debt with Athyrium Capital Management, are demonstrations of [their] plan to create a stronger and more financially capable VIVUS.”
The company hopes that PANCREAZE will allow VIVUS “to participate and be a meaningful product company in the global gastrointestinal marketplace.”
PANCREAZE is said to be safe and effective in adults and children as long as it is taken as directed by a doctor.
Shares of VIVUS Inc. went up over 40% on Tuesday after the announcement was made.
As of 4:00 pm EDT, the company was sitting at a share value of approximately $0.54, which is a significant increase compared to its $0.37 closing value on Monday.
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