Salix Pharmaceuticals, Ltd. (“Salix”) (NASDAQ: SLXP) and Cosmo
Pharmaceuticals S.p.A. (“Cosmo”) (SIX: COPN) today announced that they
have agreed to terminate their previously-announced merger agreement
pursuant to which Salix would have combined with, and become a
wholly-owned subsidiary of, Cosmo Technologies Limited, a subsidiary of
Cosmo. Under the terms of the termination, which is effective
immediately, Salix will make a $25 million payment to Cosmo.
Carolyn Logan, President and CEO of Salix stated, “When we announced our
agreement to merge with Cosmo Technologies in July we believed the
combination would generate significant value for our stockholders
through the addition of key products to our development pipeline and a
more efficient corporate structure that would enhance our profitability.
Since then, however, the changed political environment has created more
uncertainty regarding the potential benefits we expected to achieve. As
a result, Salix and Cosmo have mutually agreed to terminate the proposed
transaction. We look forward to a continuation of our long-standing
relationship with Cosmo.”
Alessandro Della Cha, CEO of Cosmo stated, “The deal with Salix showed
the potential of three products of ours for US. The development path of
the pipeline continued in the meantime, so this termination has no
effect on value creation. Our focus is now on obtaining approval of
SIC-8000 and filing Rifamycin SV and Methylene Blue NDA in the next
months. While all strategic options are in our hands, we look forward to
a continuation of our long-standing relationship with Salix.”
About Cosmo:
Cosmo Pharmaceuticals S.p.A. (SIX: COPN) is a specialty pharmaceutical
company headquartered in Lainate, Italy. The company’s proprietary
clinical development pipeline specifically addresses innovative
treatments for the gastrointestinal tract, specifically inflammatory
bowel diseases, colon infections and colon diagnosis, as well as
selected topically treated skin disorders. Cosmo’s proprietary MMX®
technology, designed to deliver active ingredients in a targeted manner
in the colon, is at the core of the Company’s product pipeline and was
developed from its expertise in formulating and manufacturing
gastrointestinal drugs for international clients at its GMP (Good
Manufacturing Practice) facilities in Lainate, Italy. Currently, Cosmo,
through its appointed partners, has three products on the market and six
in clinical development. For further information on Cosmo, please visit
the Company’s website: www.cosmopharma.com.
About Salix:
Salix Pharmaceuticals, Ltd., headquartered in Raleigh, North Carolina,
develops and markets prescription pharmaceutical products and medical
devices for the prevention and treatment of gastrointestinal diseases.
Salix’s strategy is to in-license or acquire late-stage or marketed
proprietary therapeutic products, complete any required development and
regulatory submission of these products, and commercialize them through
Salix’s 500-member specialty sales force.
Salix trades on the NASDAQ Global Select Market under the ticker symbol
"SLXP".
For more information, please visit our Website at www.salix.com
or contact Salix at 919-862-1000. Follow us on Twitter (@SalixPharma)
and Facebook (www.facebook.com/SalixPharma).
Information on our Twitter feed, Facebook page and web site is not
incorporated in our filings with the SEC.
Copyright Business Wire 2014