Cellegy sells Australia unit to fund Cellegesic

Cellegy Pharmaceuticals, a South San Francisco, California, USA-based specialist in women's health care conditions, has sold the shares in its Autralian subsidiary to privately-held Epsilon Pharmaceuticals in exchange for cash.

The sale of Cellegy Australia Pty Ltd brought an immediate cash infusion of approximately $1.25 million and, over the next 90 days, the firm will also collect an additional amount based on total accounts receivable on Cellegy Australia's books, as of March 31.

Richard Williams, Cellegy's interim chief executive, said that the transaction will help the US firm focus on its domestic business. "While Cellegy Australia has been a profitable and growing business, we need to focus on getting Cellegesic (nitroglycerin ointment 0.4%; painkiller for anal fissures) approved in the USA. This sale provided us with the cash necessary to complete preparations for the upcoming [US Food and Drug Administration] Advisory Committee meeting on April 25," he added.