Apricus Biosciences Announces Sale of Ex-U.S. Vitaros Assets and Rights to Ferring Pharmaceuticals

Apricus Biosciences, Inc., a biopharmaceutical company advancing innovative medicines in urology and rheumatology, today announced that it completed the sale to Ferring International Center S.A. (“Ferring”) of Apricus’ ex-U.S. assets and rights related to Vitaros®, Apricus’ on-demand topical cream indicated for the treatment of patients with erectile dysfunction pursuant to a definitive agreement with Ferring.  Ferring is Apricus’ existing commercialization partner for Vitaros in Latin America and certain parts of Europe and Asia. Apricus will retain its Vitaros rights in the U.S. and it remains on track to re-submit the Vitaros NDA to the FDA in the third quarter of 2017.

“This transaction reflects the continued execution of our corporate strategy of developing, obtaining regulatory approval for, and partnering novel topical prescription treatments in areas of significant unmet need,” said Richard Pascoe, Chief Executive Officer of Apricus. “Moreover, this transaction will allow us to focus our financial resources on obtaining U.S regulatory approval for Vitaros, accelerate the advancement of our clinical pipeline, strengthen our balance sheet with non-dilutive capital, extinguish our existing debt facility, eliminate certain future ex-U.S. Vitaros liabilities and lower our quarterly operating expenses by approximately 30%. I want to thank all of our commercial partners, including Ferring, for their commitment to making Vitaros a successful global brand.  We look forward to their continued success as we work towards a U.S. Vitaros NDA re-submission in the third quarter of this year.”

Associated with the acquisition of the ex-U.S. assets and rights related to Vitaros, Ferring has agreed to pay Apricus an upfront payment of $11.5 million, due upon closing, and up to an additional $700,000 with respect to certain product inventory. Furthermore, the parties have entered into a transition services agreement, whereby Ferring has agreed to pay Apricus an amount equal to $500,000, payable over two calendar quarters, in exchange for Apricus’ assistance in facilitating the transfer of such assets and know-how to Ferring, subject to certain limitations. Ferring will be responsible for managing all Vitaros-related activities outside the U.S. at its cost and working with existing Vitaros commercialization partners outside the United States.