Clarus gets approval to sell testosterone drug Jatenzo to Tolmar

By Sarah Lizee

Olympia, Wash., Oct. 26 – Clarus Therapeutics Holdings, Inc. gained court approval to sell to Tolmar, Inc. its testosterone drug Jatenzo, according to an order filed with the U. S. Bankruptcy Court for the District of Delaware.

The purchase price includes a cash consideration consisting of $7.25 million upfront and contingent consideration payable as follows:

• For a three-year period consisting of royalties in the amount of 6% of net sales of the drug within the United States for net sale of up to $20 million and 10% for net sales within the United States for net sales greater than $20 million, with a minimum royalty payment of $500,000 for each year of the three-year term; and

• Annual milestone payments of $3 million, $5 million or $7 million if net sales of Jatenzo exceed $30 million, $50 million or $70 million, respectively.

The Northbrook, Ill.-based pharmaceutical company filed bankruptcy under Chapter 11 on Sept. 5. The case number is 22-10845.

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