Ventrus acquires title to hemorrhoids product

Ventrus BioSciences (NASDAQ:VTUS) has completed the acquisition of all rights and title to VEN 309 (iferanserin) from the licensor, Sam Amer & Co. for a total price of $12.5 million, of which $500,000 was paid on execution of the purchase agreement last June.

The acquisition enables Ventrus to reduce royalties by approximately 66% and total milestone payments by approximately 50% (from $20 million to $10.5 million), compared with those required under the original license agreement with Sam Amer.

Ventrus will pay Sam Amer royalties of between 3% and 4% on net annual sales in the U.S. and between 1% and 1.33% on gross annual sales outside the U.S., subject to a minimum royalty payment on both U.S. and non-U.S. sales.

“Not only were we fortunate to buy the rights prior to the Phase 3 read out for VEN 309, but this potentially enhances the value of the asset,” CEO Dr. Russell Ellison said in a statement.

Ventrus will finance the acquisition from proceeds of a financing last July.