Retrophin Announces Divestment Of Non-Core Assets To Turing Pharmaceuticals For $3M Up Front
Retrophin, Inc. (NASDAQ: RTRX [FREE Stock Trend Analysis]) today announced that it has reached an agreement to divest non-core assets ketamine, Syntocinon Nasal Spray® (oxytocin), and Vecamyl® (mecamylamine HCI tablets) to Turing Pharmaceuticals. Under the terms of the agreement, Turing Pharmaceuticals will pay Retrophin a $3 million upfront payment and assume all liabilities and future milestone payments related to these products. The transaction is subject to specified conditions to closing and consents. Also as part of the agreement, Retrophin founder Martin Shkreli has resigned from the Company's Board of Directors and his employment agreement has been terminated, effective immediately.
"We remain confident in the potential of Chenodal® and Thiola® to guide the company to profitability, and we will continue to invest in and support these marketed products to ensure they provide the maximum possible benefit to patients," said Stephen Aselage, Chief Executive Officer of Retrophin. "This agreement will also allow us to focus on advancing key pipeline assets, including sparsentan for FSGS and RE-024 for PKAN, through the clinic."
Steve Richardson, Chairman of the Board of Directors, added, "With a streamlined effort, the company can now take important next steps towards organic growth while continuing to pursue exciting development opportunities. We thank Martin for his many contributions to Retrophin and wish him the best of luck in his next endeavor."
The divestment is expected to close by the end of the first quarter of 2015.