Centocor Buys Retavase Rights For $335 Million

Centocor has entered into a definitive agreement to acquire the US andCanadian rights to Retavase (reteplase) from Roche Healthcare for $335 million in cash. The drug, which received marketing authorization from the US Food and Drug Administration in October 1996, had sales of approximately $300 million in the USA in 1997 and a 12% share of that market. Centocor noted that it plans to distribute Retavase in Canada through a partner and is looking at potential alliances.

The chance to acquire the thrombolytic drug has arisen as Roche, as part of the Corange takeover, is expected to divest Retavase, which is manufactured and marketed by Boehringer Mannheim (part of Corange). The divestiture is due to Roche's majority stake in Genentech which makes a competing product, the thrombolytic Activase (alteplase), and the transaction, which is subject to the completion of Roche's acquisition of Corange, is itself expected to close during the first quarter of 1998.

Under the terms of the agreement, Centocor will also acquire, at an agreed price per unit, BM's remaining US inventory of Retavase, and BM will continue manufacturing the drug in Germany for the time being. Centocor will also assume responsibility for the defense of patent litigation initiated against BM by Genentech in the USA and Germany, while legal costs will be shared with Roche.