Earlier this week, Biovail and Valeant Pharmaceuticals pulled the wraps of a deal to merge the two companies into a much larger, more diversified operation that will combine pipelines for CNS drugs as well as dermatology products. But the merger also puts Biovail's drug delivery technologies on the table as well.
Biovail built its business from the 1990s to 2008 around extended-release technology, notes Genetic Engineering and Biotechnology News. Over that time the developer targeted controlled release, enhanced absorption, taste masking and oral disintegration technologies.
Drug delivery technology is no longer a core strategy for Biovail, but it continues to be a key focus as the company expanded its pipeline of novel therapies in recent years. Biovail paid $40 million to license U.S. and Canadian rights to Alexza's AZ-004, which uses Alexza's Staccato inhalation device to deliver loxapine as a therapy for agitation associated with bipolar disease or schizophrenia.
The cash-and-stock transaction has been warmly embraced by Wall Street analysts and the Biovail's share price has taken a big jump since the news hit. Combining the companies will also allow the new executive team to lay off about 20 percent of its workforce, providing some quick savings that should help juice earnings.
- here's the story from Genetic Engineering and Biotechnology News
- and here's the AP deal summary