QLT Sells US Business to Tolmar for up to $230M

Biotechnology company QLT Inc. said Thursday it sold its U.S. business to Tolmar Holding Inc. in a deal worth as much as $230 million.

Vancouver-based QLT said it will receive $20 million upfront, and another $10 million by Oct. 1, 2010. The rest of the money, up to $200 million, will be paid on a quarterly basis depending on sales of Eligard, a drug used to reduce the symptoms of prostate cancer.

Eligard is a hormone therapy intended to help manage the effects of prostate cancer by reducing testosterone. QLT licensed the drug to a Sanofi-Aventis subsidiary in the U.S. and Canada, and to MediGene AG in Europe. Under terms of the sale, QLT will receive 80 percent of the royalties on sales until the total payment reaches $200 million, or until Oct. 1, 2024, whichever happens first.

QLT USA developed and manufactures the drug, and QLT Inc. said it is the business's main asset.

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