Santen Pharmaceutical Co. has announced the closing of an asset purchase agreement that was entered on 13 May 2014 between Merck & Co., Inc. (known as MSD outside of the US and Canada) with respect to the acquisition of certain ophthalmology assets, following the fulfillment of all of the transfer conditions, except in some territories, in accordance with the terms of the agreement.
Accordingly, on 1 July 2014, Santen completed the payment to Merck as stated below.
The completed transaction concerns products primarily intended for Asia, including Japan, South Korea and Europe excluding some countries. Santen's payment for the closed transaction totaled approximately USD 550 million (approximately JPY 56 billion). The total amount of consideration for the transfer, when completed as provided for under the agreement, will reach approximately USD 600 million, as previously announced on 13 May 2014, with additional contingency payments based on certain sales milestones and an agreement to purchase product supply from Merck. The remaining assets will be transferred as soon as the closing conditions are fulfilled.
Also Santen is funding the transaction with a combination of cash on hand and bank loans.
Santen plans to disclose separately information relating to the impact that this transaction may have on the company's forecasted fiscal performance for the fiscal year ending on 31 March 2015.