Indevus Pharmaceuticals has signed an agreement to acquire fellow US firm Valera Pharmaceuticals in a deal valued at around $120 million.

Under the terms of the all-stock deal, Indevus will pay $7.75 per share

for Valera, which represents more than a 40% premium on its closing price

on Monday, plus contingent payments of up to $3.50 per share based on

future product milestones. The merger is expected to be completed in


Explaining the rationale behind the deal, Indevus chief executive Glenn

Cooper said that the acquisition of Valera firmly establishes his firm “as

an emerging leader in the specialty areas of urology and men’s health and

fully leverages our national sales force.”

Once the merger is finalised, Indevus’ portfolio will include three

marketed products and the combined company anticipates five new product

launches within two years. At present, Indevus co-promotes the overactive

bladder therapy Sanctura (trospium) with Barr Labs subsidiary Pliva, and

also sells Delatestryl, an injectable testosterone preparation for the

treatment of male hypogonadism.

A co-promotion deal has already been signed for Valera’s lead product

Vantas (histerlin) for advanced prostate cancer and Valera also noted that

it has filed a New Drug Application with the US Food and Drug

Administration for Supprelin-LA (also histrelin), a treatment for central

precocious puberty.