CollaGenex Pharmaceuticals Announces Agreement to Acquire SansRosa Pharmaceutical Development Inc.
NEWTOWN, Pa.--(BUSINESS WIRE)--Dec. 15, 2005--CollaGenex Pharmaceuticals, Inc. (NASDAQ:CGPI - News) today announced that it had entered into a definitive agreement to acquire all the shares of SansRosa Pharmaceutical Development Inc. ("SansRosa"). SansRosa is the assignee of various patent applications covering innovative methods for the treatment of redness associated with rosacea and other skin disorders.
Payment for shares of SansRosa will be made in installments tied to the achievement of various product development milestones. CollaGenex will be solely responsible for product and clinical development.
CollaGenex will make an initial payment of $750,000 for 51% of the shares of SansRosa. This payment will be made upon closing, which is expected to occur today. The remaining shares will be purchased upon the achievement of various milestones. If all milestones are achieved and a patented product is developed and approved for sale, CollaGenex will pay the shareholders of SansRosa an additional $4-$6 million. The agreement also provides for earn-out payments linked to future product sales.
"The acquisition of this technology is another important step in executing our strategy to become a leader in providing innovative products to the dermatology market," said Colin Stewart, president and chief executive officer of CollaGenex. "SansRosa is an excellent fit for CollaGenex. There are currently no effective treatments for the redness associated with rosacea and certain other dermatological conditions. If successfully developed and approved, a topical product based on SansRosa's technology would complement our existing pipeline, including Oracea(TM), which is currently under review by the FDA."
Dr. Klaus Theobald, Chief Medical Officer of CollaGenex, commented: "SansRosa's proposed technology offers an elegant approach that, if successfully developed, would address a largely unmet medical need."
"We are extremely pleased that CollaGenex will develop this exciting technology," said Jack DeJovin, Founder of SansRosa... |
