- BioDelivery Sciences International (NASDAQ:BDSI) is up 9% premarket on light volume in response to its announcement that Endo International (ENDP) will return global rights to BELBUCA (buprenorphine) buccal film back to BDSI effective January 6, 2017. The product's annual sales run-rate is more than $27M so it will be immediately accretive to revenue and earnings.
- Endo says its remaining portfolio of pain products does not require a field sales force so it is eliminating its 375-person U.S. Branded pain sales organization as well as internal support for the promoted pain business unit. The move will enable it to focus its resources on its core U.S. Branded assets including XIAFLEX (collagenase clostridium histolyticum). It will record a restructuring charge of ~$62M as a result. The initiative is expected to save $90M - 100M in run-rate cost savings next year.
- Endo CEO Paul Campanelli says, "Since we entered into our licensing and development agreement with BDSI in 2012, the opioid market and Endo's strategic priorities have evolved. While we continue to believe BELBUCA is a differentiated asset, the product no longer aligns with Enod's U.S. Branded segment strategy and our focus on core assets, including XIAFLEX, moving forward."
- BDSI will host a conference call this morning at 8:00 am ET to discuss the matter.