10/19/2005 5:12:12 PM
Medicis Pharmaceutical Corp. on Wednesday said it agreed to amend its May 2004 license agreement with BioMarin Pharmaceutical Inc. The changes will not affect the company's 2005 outlook, the drug maker said. The new deal cuts the amount Medicis will receive from BioMarin to $159 million from $175 million. License payments to be made after July for the asthma therapy Orapred will be cut to $88.4 million from $93 million; and a 2009 payment relating to the purchase of outstanding shares of Ascent Pediatrics will be reduced to $70.6 million from $82 million.
The company said it will take over contingent payments due to former Ascent Pediatric shareholders without the $5 million that would have been paid by BioMarin to Medicis after July 1.
Also, Medicis said it will give BioMarin a convertible note worth up to $25 million starting July 1, contingent on certain conditions including a change of control provision. The note matures in 2009.
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