KV Pharmaceutical to Pay Hologic, Inc. (HOLX) $60 Million to Settle Makena Drug Dispute
12/11/2012 8:09:59 AM
KV Pharmaceutical has agreed to pay Bedford, Mass.-based drug firm Hologic Inc. $60 million to settle a dispute over rights to the premature-birth drug Makena, which Hologic sold to KV. When KV filed for bankruptcy Aug. 4, it failed to make a $95 million payment it owed Hologic, which developed the drug. KV agreed to pay Hologic (Nasdaq: HOLX) close to $200 million for “orphan drug” status and to exclusively sell the branded drug for seven years. Hologic claimed that the value of its interests in the Makena assets were subject to decline and that such interests were not adequately protected, according to a filing Monday with the Securities and Exchange Commission. Hologic had filed a proof of claim in the bankruptcy case asserting a claim against KV for $95 million plus certain royalties allegedly owed to Hologic under the asset purchase agreement.