ProStrakan completes purchase of Cellegy assets

Strakan International, a wholly-owned subsidiary of Scottish-based ProStrakan, has completed its acquisition of Cellegy’s rights to a number of treatments and their associated intellectual property assets.

ProStrakan has completed the purchase of the rights to Rectogesic (nitroglycerin ointment), and testosterone gel products Fortigel, Tostrex and Tostrelle. The value of the deal is put at $9 million (4.6 million pounds), with Cellegy paying back ProStrakan around $2 million of this amount as repayment for an earlier loan made to the company.

“ProStrakan also assumed various existing distribution and other agreements, including in certain south-east Asian countries, relating to the assets and intellectual property that was sold,” Cellegy reports.

The asset purchase agreement was originally announced in September 27th, with the shareholders in Cellegy approving the deal at a meeting on November 22nd.

In January, Cellegy and ProStrakan renegotiated its EU license and distribution for Teostrex, its two per cent topical testosterone gel used to treat male hypogonadism.

According to the new agreement, ProStrakan became responsible for manufacturing and other functions related to product support and began to acquire the treatment directly from its manufacturer, rather than Cellegy.

This amendment followed the original license agreement for Tostrex signed by the companies in July 2004.