Serono sells Crinone to Columbia Laboratories

Columbia Laboratories has announced that it has purchased the current inventory of Crinone (progesterone gel) from Serono, in addition to the marketing rights in the US for the treatment.

The company funded this acquisition through a private placement of convertible subordinated notes that raised $40 million (20.29 million pounds). Columbia Laboratories will also pay Serono the full cost of the transaction.

Robert S Mills, president and chief executive officer of Columbia, commented that the company was “extremely pleased” with the transaction that would allow it to enhance its operations in the infertility business to include the reproductive endocrinology market.

“The crinone acquisition also eliminates the 30 per cent royalty we paid Serono on sales of Prochieve progesterone gel and brings our gross margin for that product within the typical margin range for specialty pharmaceutical products,” he said.

He added that this transaction was an “important step” in the company’s goal to become a key part of the market in reproductive healthcare for women.

Last month, the European Commission reported that it had approved the planned acquisition of Serono by Merck KGaA without any restrictions, following approval from antitrust regulators in the US in October.