First Horizon Acquires Rights to Andrx's Fortamet, Altoprev

As part of its previously announced effort to divest its brand pharmaceutical operations, Andrx has inked a deal to sell the rights to its Fortamet and Altoprev products to First Horizon Pharmaceutical.

Under the terms of the agreement, First Horizon will pay Andrx $50 million at closing and up to $35 million when Andrx achieves and maintains certain defined manufacturing service levels for the drug products. Fortamet (metformin HCl) is a treatment for Type 2 diabetes, and Altoprev (lovastatin) is intended to treat high cholesterol.

Andrx announced in early January that it was pursuing a corporate realignment that would involve the divestiture of its brand pharmaceutical business, which lost more than $31 million during the first nine months of 2004.

Andrx CEO Thomas Rice said many firms expressed an interest in Fortamet and Altoprev, but the company said First Horizon offered it the best chance to optimize the short-term and long-term value of the products.