Indivior PLC (LON:INDV) is to sell its rights related to the Sai Bo Song opioid addiction treatment drug in China to privately-held Zhejiang Pukang Biotechnology for up to US$122.5mln.
The drugmaker will receive US$17.5mln in near-term payments and may receive a further US$105mln based on certain technical assistance it provides to Pukang and the achievement of certain sales milestones over a 10-year period following the first commercial sale of the product in China.
The transaction is expected to be completed by the fourth quarter of 2019.
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"The divestiture of the Sai Bo Song tablet in China is consistent with Indivior's efforts to prioritise efforts on the long-term growth opportunities with our new depot assets, Sublocade and Perseris," said Indivior chief executive Shaun Thaxter.
"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."
In a separate announcement, Indivior said it had entered into an agreement with Alvogen Pine Brook to stop Alvogen temporarily from selling, offering to sell or importing cut-price versions of its opioid addiction treatment Suboxone.
In January, the US District Court of New Jersey had granted Indivior a temporary restraining order against Alvogen from launching generic versions of Suboxone.
A preliminary injunction (PI) hearing had been scheduled for February 7 but it will no longer take place following the agreement between the two.
“Indivior will continue to pursue its infringement cases against Alvogen…,” Thaxter said.