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Assertio selling shingles pain drug Gralise for $127.5M

Assertio Therapeutics will sell its Gralise brand pain drug to global drugmaker Alvogen for about $127.5 million, the Lake Forest-based company announced Thursday.

Under the terms of the agreement, Alvogen will pay Assertio $75 million in cash upon closing, expected in January, with the remaining to be paid as royalty on the first $70 million in Gralise net sales.

Both companies expect the majority of the royalties to be paid in the first calendar year.

Gralise is a prescription medicine used to treat pain after shingles, according to the company.

Assertio's drug portfolio has focused on the fields of neurology and specialty medicines, and President and CEO Arthur Higgins said the sale of Gralise will help maintain that focus.

"This transaction continues the transformation of Assertio, allows us to focus on our growth products, Cambia and Zipsor, strengthens our balance sheet, and increases our flexibility for future business development opportunities," Higgins added.

New Jersey-based Alvogen is a global, private pharmaceutical company that manufactures generic and brand drugs for treatment of conditions in oncology, cardiology, respiratory, neurology and gastroenterology, according to its website. The company operates in 35 countries with 2,800 employees and four manufacturing and development hubs in the U.S., Romania, Korea and Taiwan.

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