Canada-based Aralez Pharmaceuticals has completed the divestment of more than 20 medicines under its portfolio to Nuvo Pharmaceuticals for a total consideration of $110m.

Nuvo acquired Aralez’s Canadian specialty pharmaceutical business, formerly called Tribute Pharmaceuticals Canada, which includes Cambia, Blexten, Suvexx and the distribution rights to Resultz in Canada.

The deal also included the sale of royalties and Canadian operations of Vimovo, a drug indicated to treat signs and symptoms of osteoarthritis, rheumatoid arthritis and ankylosing spondylitis.

Nuvo expects the acquisition to yield revenue diversification via product sales and royalty revenues. The company is also anticipating significant cash flow from Vimovo’s US and international royalties.

The deal provides Nuvo with a Canadian platform, which features national sales infrastructure along with capability to launch and commercialise additional products.

Nuvo Pharmaceuticals president and CEO Jesse Ledger said: "Nuvo is now truly differentiated from our peers, as we boast a Canadian national sales and marketing organisation, enhanced Ireland-based infrastructure to support our international business, a world-class manufacturing facility and a diversified portfolio of growth products, including a pipeline of line extension and complementary new product opportunities.

"Our newly combined business is supported by a strong and experienced management team and business infrastructure, which positions us for enhanced growth, profitability and value creation moving forward."

Aralez signed an agreement to divest the portfolio to Nuvo Pharmaceuticals in August last year.

The deal was accompanied by another agreement to divest Aralez’s Toprol-XL franchise to Deerfield Management Company for around $130m.

Aralez said that it is currently working on obtaining the US Bankruptcy Court approval for the sale of the TOPROL-XL franchise.

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