Axcan Acquires Photofrin Rights from QLT

MONT SAINT-HILAIRE, Quebec, Canada, May 2 -- Axcan Pharma Inc. has signed an agreement to acquire worldwide rights to Photofrin -- a drug approved for use in photodynamic therapy for the treatment of certain cancers -- from QLT PhotoTherapeutics Inc. (QLT) of Vancouver.
Axcan's acquisition of the rights to the drug involves a stock subscription agreement under which QLT will purchase 1,283,333 shares of Axcan common stock for $19,250,000 (CDN), or $15 per share (CDN). The transaction between the two companies also involves an asset purchase agreement, which calls for QLT to sell, license or sub-license to Axcan all QLT's rights, title and interest in Photofrin for $39.25 million (CDN). This agreement includes the sale of QLT's European subsidiary, which owns the European registrations for Photofrin.