Barr Closes Two Deals

The drugmaker becomes the No. 1 player in the emergency contraceptive market.
By Robert Steyer ,

Barr Pharmaceuticals

(BRL)

on Thursday formally took control of the emergency contraceptive market in the U.S., where sales are easily dwarfed by political controversy.

The Woodcliff Lake, N.J., company said it had acquired the privately held

Women's Capital Corp.

, owner of Plan B, a so-called morning-after pill, for $21 million, including the assumption of $9 million in debt. The deal was expected, as Barr had signed a letter of intent in October.

Barr also announced that it had acquired the assets and technology of

Gynetics,

another private company, which sells Preven, the only other emergency contraceptive approved by the Food and Drug Administration. Barr, which has been manufacturing Preven for Gynetics, said it would pay $4.2 million plus future royalties.

Recently, Barr's stock was up 90 cents, or 1.2%, at $77.44.

Together, Plan B and Preven -- both prescription drugs -- had about $20 million in U.S sales last year, according to analysts' estimates.

Many analysts say a non-prescription version of Plan B could expand annual sales from $10 million to $25 million or $35 million. Some say the annual revenue could approach $100 million.

Barr said the acquisition of Plan B would have no effect on earnings for the fiscal year ending June 30 and would add to earnings afterwards. It made no comment on the earnings impact of acquiring Preven.

Barr and the Women's Capital Corp. had petitioned the FDA for permission to convert Plan B into an over-the-counter drug, arguing that easier access would help reduce unwanted pregnancies. Critics say such a move would encourage promiscuity and increase the risk of sexually transmitted disease.

Plan B can reduce the risk of pregnancy by 95% if it is taken within 24 hours of unprotected sex, Barr says. The rate falls to 89% if taken within 72 hours.

Currently, five states allow emergency contraceptives to be sold by pharmacies without an advance prescription.

Making Plan B an over-the-counter product has been endorsed by such groups as the American Medical Association and the American College of Obstetricians and Gynecologists. Two federal advisory committees -- in a joint 23-4 vote in mid-December -- endorsed the change in status. But the FDA said earlier this month that it wanted to extend the review period by 90 days so it could examine additional data on adolescents' use of Plan B. A decision is due in mid-May.

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