Cornerstone announces multi-million dollar transaction with Chiesi Farmaceutici

Cornerstone Therapeutics, a US pharmaceutical company focused on developing prescription drugs primarily for respiratory conditions, has agreed to a US$70m deal with Italian pharmaceutical firm Chiesi Farmaceutici, headquartered in Parma, Italy.

Cornerstone will issue 11.9 million shares of common stock and receive the US rights to Chiesi's Curosurf, an FDA-approved drug for Respiratory Distress Syndrome (RDS) in premature infants, and US$15.5m in cash.

Under the terms of the agreement, Cornerstone will get an exclusive 10-year licence with renewable rights for the US rights to Curosurf. The company will also receive first rights on all new products and technology Chiesi intends to market in the US.

In 2008, Curosurf's net sales in the US, where it has a 44% market share, exceeded US$30m.

"We believe this is a truly transformative transaction for Cornerstone, providing us with a market leading proprietary respiratory product, significant capital and access to future products in our core therapeutic area at our discretion," said Craig Collard, president and ceo of Cornerstone. "Adding US$15.5m to our balance sheet supports the continuing development of our existing product pipeline and will allow us to grow our sales organisation better to position us for growth with our current and future products."

"We believe this agreement has the potential to meaningfully increase our footprint in the US," said Alberto Chiesi, Chiesi's president and ceo.

The transaction is subject to the approval of Cornerstone's stockholders, receipt of regulatory approvals and other customary closing conditions.