Avanir Pharmaceuticals Announces Sale of FazaClo

Avanir Pharmaceuticals announced that it has signed a definitive agreement to sell its antipsychotic drug FazaClo to Irish pharmaceutical company Azur Pharma.

FazaClo is indicated for schizophrenic patients who fail to respond adequately to standard drug treatments. FazaClo is also indicated for reducing the risk of recurrent suicidal behavior in patients with schizophrenia or schizoaffective disorder, Avanir and Azur said.

Under terms of the agreement, Avanir said it will receive approximately $42 million at the close of the transaction with up to an additional $10 million in contingent payments in 2009. In addition, Avanir will receive up to $2 million in royalties, based on 3 percent of annual net product revenues in excess of $17 million.

The agreement is subject to customary closing conditions and is expected to close by early August, according to the companies.