Indivior PLC (LON: INDV) (“Indivior” or the “Company”) announced on 2/2/19 that it has entered into a definitive agreement to divest its rights related to the Sai Bo Song (buprenorphine, naloxone) tablet in China to Zhejiang Pukang Biotechnology Co., Ltd. (“Pukang”) for a total consideration of up to $122.5 million.
Pukang is a privately held company focused on vaccines and headquartered in Hangzhou, China that is seeking to diversify into small molecule therapies.
“The divestiture of the Sai Bo Song tablet in China is consistent with Indivior’s efforts to prioritize efforts on the long-term growth opportunities with our new depot assets, Sublocade and Perseris,” said Shaun Thaxter, Chief Executive Officer of Indivior. “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.”
The transaction is subject to the designation of the Sai Bo Song™ tablet as a Class II psychotropic drug by Chinese regulators, Chinese outbound investment approvals, and other closing conditions.
The foregoing regulatory hurdles will occur throughout 2019 and the transaction is targeted to close by end of Q4, 2019.
Terms of the transaction include a signing payment of $1.5 million, $3.5 million upon designation of the Sai Bo Song tablet as a Class II psychotropic drug by Chinese regulators, and $12.5 million upon closing of the transaction, for a total of $17.5 million in near-term payments. Indivior is also entitled to royalties and may receive an additional $105.0 million based on certain technical assistance to be provided by Indivior to Pukang and the achievement of certain sales milestones during a ten-year period following the first commercial sale of the product in China, for a total consideration of up to $122.5 million.