Azur acquires anti-psychotic drug FazaClo

Pharmaceutical company Azur Pharma has acquired the anti-psychotic drug FazaClo from US company Avanir Pharmaceuticals.

Azur was established in June 2005 by former Elan senior executive Seamus Mulligan.

Under the terms of the agreement, Azur will pay $42m (€31m) to Avanir at the close of the transaction and up to another $10m (€7.3m) in contingent payments based on regulatory milestones during 2009.

In addition, Azur will pay up to $2m (€1.5m) in future royalties based on 3% of annual net product revenues for FazaClo in the US in excess of $17m (€12.5m).

This is the third acquisition undertaken by Azur Pharma since the company was established in June 2005.