Avanir Pharmaceuticals jumps on sale of antipsychotic drug to Azur Pharma
Shares of Avanir Pharmaceuticals (Nasdaq: AVNR) got a jolt this morning after the specialty pharmaceutical company reported it has completed the sale of its currently marketed antipsychotic drug, FazaClo, to pharmaceutical company Azur Pharma.
Upon close of the transaction, Avanir Pharmaceuticals received an upfront payment of $42 million, plus an additional $1.9 million in working capital adjustments.
Under the terms of the agreement, previously announced July 3, Avanir Pharmaceuticals could receive up to an additional $10 million in payments in 2009 conditional upon certain regulatory conditions. The company further said it could also receive up to $2 million in royalties based on 3% of annualized net product revenues in excess of $17 million.
Shares of Avanir Pharmaceuticals jumped 16.48%, or $0.29, to $2.05 in pre-market trading.
