Troubled NitroMed auctions off heart failure drug for $26M

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JHP Pharmaceuticals, a pharmaceutical company, has agreed to acquire substantially all of the assets of NitroMed’s only marketed product—BiDil, a heart-failure drug approved specifically for black patients.

The purchase and sale agreement between the companies provides that the Lexington, Mass.-based NitroMed will receive consideration of $24.5 million in cash, subject to an accounts receivable adjustment, plus up to an additional $1.8 million for closing date inventory. The Parsippany, N.J.-based JHP will assume all but specified liabilities related to the transferred assets.

NitroMed said its BiDil (isosorbide dinitrate/hydralazine hydrochloride) is an orally administered medicine FDA approved for the treatment of heart failure in self-identified black patients as an adjunct to current standard therapies.

After the deal is completed, NitroMed will concentrate on “seeking to maximize shareholder value by combining, through one or more strategic transactions, with companies that have significant unrealized value or growth potential,” according to CEO Kenneth M. Bate. Divestiture of some or all of its business is another option the company might pursue, he added.