Assertio Therapeutics Inc. is selling all rights related to its pain drug Gralise to Pine Brook, N.J.-based privately held company Alvogen Inc. for a transaction value of about $127.5 million.
Under the agreement, Lake Forest, Ill.-based Assertio will receive $75 million in cash upon closing and the balance in the form of a royalty on the first $70 million in net sales of Gralise, which is used to treat pain from damaged nerves that occurs during healing of the viral infection shingles.
The companies expect the majority of the royalties to be paid in the first calendar year.
Assertio's President and CEO, Arthur Higgins, said the sale will allow the company to focus on anti-inflammatory drug Cambia and another pain drug Zipsor.
The divestment will also give the company flexibility for future business development opportunities, Higgins noted in a Dec. 12 press release.
The transaction is expected to close in early January 2020, subject to regulatory approval.
The company added that it would specify the financial impact of the sale following the closing of the transaction.