Forest Laboratories To Buy Exclusive Rights For Saphris From Merck Sharp & Dohme

(RTTNews) - Forest Laboratories Holdings Limited, a wholly owned unit of Forest Laboratories, Inc. (FRX), Monday said it entered into an agreement to acquire exclusive rights for Saphris or asenapine sublingual tablets in the United States, from Merck Sharp & Dohme B.V., a wholly owned subsidiary of Merck & Co., Inc. (MRK).

Saphris was approved by the FDA and launched in 2009 as an atypical antipsychotic used for the treatment for adult patients with schizophrenia or acute bipolar mania. Merck recorded net sales of $150 million in the fiscal 2013.

Pursuant to the agreement, Forest Laboratories will make an upfront payment of $240 million and additional payments to Merck based on defined sales milestones. Other financial details of the agreement were not divulged. The agreement is expected to close in early 2014. Merck will remain responsible for product supply, while Forest Laboratories will assume responsibility for continued commercialization. Following a transition period, Fores Lab will complete certain post marketing studies of Saphris and will be the marketing authorization holder.