Boston, MA 02/13/2014 (wallstreetpr) – Retrophin, Inc. (NASDAQ:RTRX) has announced that it will acquire Manchester Pharmaceuticals® LLC for $62.5million. Manchester Pharmaceutical has a line-up of drugs for rare diseases. The deal includes an amount of $29.5million as upfront payment and excludes royalties on these products. Both companies aim to close the deal before March 1, 2014.
Will gain from two approved drugs
For Retrophin, Inc. (NASDAQ:RTRX) the acquisition becomes a value-addition for it essentially offers rare disease therapies and Machester holds two drugs approved by the FDA in this category. The first is a gall stone therapeutic allied as Chenodal. This offers an alternative for such patients where age is an inhibitor or cannot be solved by surgery.
However, its importance is in treating an inherited disease, which is very rare. The condition is called as CTX or cerebrotendinousxanthomatosis. Because of this condition, infants suffer from conditions such as diarrhea, cataracts in early childhood as well as neurodengeration in adulthood. In this condition the patient tends to develop fatty yellow nodules which deter the development and functioning of the brain and eventually lead to death.
The wining point for Retrophin with Chenodal is the fact that the only FDA-approved CTX.cure is the chenodeoxycholic acid. Patients with this rare disease are found to respond well to the use of CTX.
Retrophin, Inc. (NASDAQ:RTRX) will also gain the use of the second drug- Vecamy which will help it focus on the expanding hypertension consumer market. The drug is ideal for such conditions as moderately severe conditions of hypertension. Most are prescribed this drug if they suffer from conditions similar to malignant hypertension and do not have further complications because of this condition.
Announces in-line 2014EPS
Retrophin, Inc. (NASDAQ:RTRX) will now leverage the advantages these two drugs will offer in bolstering revenues. FY2014 revenue expectation is $10-$12 million.
