Adams buys Delsym from UCB for $122 million plus royalty

New York, May 24 - Adams Respiratory Therapeutics, Inc. said it has agreed to buy Delsym (dextromethorphan polistirex) from UCB for $122 million up front plus a "modest" royalty for five years.

The royalty will be based on sales. The companies also entered into a standard manufacturing supply agreement with a cost-plus structure.

In addition, Adams and UCB signed a separate agreement for the licensing of the 12-hour liquid technology.

"I am very excited about this opportunity because it represents an excellent strategic fit and it meets our product acquisition criteria on a number of levels," said Michael J. Valentino, president andchief executive officer of Adams, in a news release.

Specifically, he said Delsym "immediately increases our critical mass within the respiratory space and provides us with a strategic foothold in the $300 million OTC [over-the-counter] cough syrup segment."

In addition, the product will leverage Adams' existing sales and marketing infrastructure and the deal gives the company access to another proprietary drug delivery technology, a patented 12-hour liquid.

Finally, he said Adams believes it can improve brand awareness and market penetration of Delsym through its innovative consumer and professional marketing programs, something Adams considers a core competency.

Adams is a Chester, N.J., specialty pharmaceutical company focused on over-the-counter and prescription pharmaceuticals for the treatment of respiratory disorders.

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