VIVUS, Inc. (Nasdaq: VVUS) today announced that it has entered into an asset purchase agreement with Meda - an international specialty pharma company - for MUSE®, transurethral alprostadil, for the treatment of erectile dysfunction (ED). Under the agreement, Meda will acquire the MUSE assets including the United States and foreign MUSE patents, existing inventory and the manufacturing facility located in Lakewood, New Jersey. As part of the transaction, the existing VIVUS employees that are MUSE dedicated, including the field sales force, are expected to join Meda. VIVUS will retain all of the liabilities associated with the pre-closing operations of the MUSE business.
"We have been business partners with Meda in Europe for MUSE since 2000 and the acquisition of MUSE fits with their expansion plans," stated Leland Wilson, chief executive officer of VIVUS. "The divestiture of MUSE to Meda will allow us to focus on our commercialization efforts for QNEXA for obesity and development of avanafil for erectile dysfunction. I appreciate all the efforts from those employees that have been involved with MUSE since its approval in late 1996. As part of the Meda urology portfolio, we expect MUSE to continue to meet the needs of ED patients and their providers for years to come."
The acquisition price is $23.5 million, which includes an upfront cash payment of $22 million. VIVUS is eligible to receive a one-time milestone payment of $1.5 million based on future sales of MUSE. The transaction is subject to standard closing requirements and conditions. The transaction is expected to close on or before November 15, 2010.
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