EXTON, Pa., Nov. 5, 2004 (PRIMEZONE) -- ViroPharma Incorporated (Nasdaq:VPHM) announced today that they have received a notice of early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act regarding its agreement to acquire the Vancocin(r) brand in the U.S from Eli Lilly and Company (Lilly) (NYSE:LLY). As previously announced, ViroPharma Incorporated has entered into an agreement with Lilly under which ViroPharma will acquire all rights in the U.S. to manufacture, market and sell Vancocin Pulvules(r), the oral capsule formulation of Vancocin (vancomycin hydrochloride), as well as rights to certain related Vancocin products.
Under the terms of the agreement, Lilly will receive an upfront payment of $116 million for all rights to Vancocin Pulvules in the United States at the closing of the transaction, which is anticipated to occur during the week of November 8, 2004. In addition, Lilly will participate in the potential upside through the receipt of royalties on annual net sales of Vancocin Pulvules within a predefined range. ViroPharma's upfront payment will be comprised of $53.5 million from existing ViroPharma cash reserves and $62.5 million gross proceeds from the issuance of Senior Secured Bridge Notes due October 2005 and warrants to purchase shares of ViroPharma common stock. The Senior Notes and Warrants will be automatically exchanged for $62.5 million aggregate principal amount of 6% Senior Secured Convertible Notes due October 2009 upon the receipt of stockholder approval of the issuance of the Convertible Notes.
About Vancocin Pulvules
Vancocin HCl Pulvules is approved for oral administration for treatment of enterocolitis caused by S. aureus (including methicillin-resistant strains) and antibiotic-associated pseudomembranous colitis caused by C. difficile. For prescribing information, please download the package insert at http://www.fda.gov/cder/foi/label/2004/50606slr020_vancocin_lbl.pdf.
About ViroPharma Incorporated
ViroPharma Incorporated is committed to the development and commercialization of products that address serious diseases treated by physician specialists and in hospital settings. ViroPharma has entered in an agreement with Eli Lilly and Co. to acquire Vancocin Pulvules, and currently focuses its drug development activities in viral diseases including cytomegalovirus (CMV) and hepatitis C (HCV). For more information on ViroPharma, visit the company's website at www.viropharma.com.