Noven to buy JDS Pharma, sees big charge
NEW YORK (Reuters) - Noven Pharmaceuticals Inc. NOVN.O said on Tuesday it would buy privately held JDS Pharmaceuticals LLC for $125 million for its product pipeline and forecast a big one-time charge from the deal, sending its shares down almost 9 percent.
Noven said the one-time charge for purchased research and development expenses was expected to exceed 50 percent of the purchase price.
It also said it would assume $10 million in net JDS liabilities.
Noven said it sees an annual sales opportunity from JDS products -- which include drugs for bipolar disorder, depression and panic disorder -- of more than $500 million starting in 2012, assuming development and regulatory approval on current schedules.
JDS sells Lithobid for bipolar disorder and Pexeva for depression, panic disorder and obsessive-compulsive disorder. It has applied to market the capsule Stavzor for bipolar disorder, migraines and epilepsy in the United States and is aiming for a 2008 launch. Another treatment for bipolar disorder, Lithium QD, a once-daily form of lithium, is in Phase 3 clinical trials.
Its Mesafem capsule to treat hot flashes in menopausal women is a potential alternative to hormone therapy and is expected to begin Phase 3 clinical trials in the first half of 2008, Noven said.
Shares of Noven fell to their lowest level in about a year, down $2.09 to $21.46 in early trading on Nasdaq.
(Reporting by Nick Zieminski and Susan Kelly)
