Dura Buys Rights to Tuberculosis Drug
Dura Pharmaceuticals Inc. said it agreed to buy U.S. marketing rights to American Home Products Corp.'s tuberculosis drug, Myambutol, for $33.5 million plus payments over the next four years based on future sales. Myambutol is an oral antibacterial agent used to treat pulmonary tuberculosis in conjunction with other medications. San Diego-based Dura, which had $181.3 million in 1997 revenue, said sales of the drug could be as much as $17 million in the first full year. The acquisition underscores a shift in Dura’s focus from older, advertising-dependent products with declining sales to newer patented drugs with stronger demand. The transaction, which will close early next month, is expected to add slightly to 1999 earnings. It is subject to review by the Federal Trade Commission. Dura shares rose 38 cents to close at $22.50 on Nasdaq. Shares of Madison, N.J.-based American Home rose $1.38 to close at $50.63 on the NYSE.