Nuvo Research Inc. (TSX: NRI), a specialty pharmaceutical company dedicated to building a portfolio of products primarily for the treatment of pain, today announced that it has completed its acquisition of ZARS Pharma, Inc. The transaction was announced on April 18, 2011.
"The combination of Nuvo and ZARS creates a leader in topical pain therapeutics," said Dan Chicoine, Chairman & Co-Chief Executive Officer of Nuvo. "In addition to Pennsaid, Nuvo's portfolio of commercial or near commercial stage products has expanded and now includes both Pliaglis® and Synera®. Our expanded portfolio should provide opportunities for accelerating revenue growth."
Under the terms of the acquisition agreement, Nuvo issued approximately 99.8 million common shares and paid approximately $0.1 million to the shareholders of ZARS, representing approximately 19.2% of Nuvo's shares after giving effect to the acquisition and assumed net debt of approximately US$2.0 million. In addition, Nuvo will issue a $14.9 million promissory note to ZARS' shareholders upon the achievement of a milestone related to ZARS' product Pliaglis, and Nuvo may issue up to an additional $8.0 million of promissory notes upon the occurrence of certain future events. Nuvo continues to expect the transaction to be neutral to its financial results in 2012 and accretive thereafter.
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