The specialty pharmaceutical companies, Salix Pharmaceuticals, Ltd., based in Raleigh, North Carolina,  and Cosmo Pharmaceuticals S.p.A., based in Lainate, Italy  have agreed to terminate their previously announced merger agreement pursuant to which Salix would have combined with, and become a wholly owned subsidiary of, Cosmo Technologies Limited, a subsidiary of Cosmo. Under the terms of the termination, which is effective immediately, Salix will make a $25 million payment to Cosmo.

Carolyn Logan, president and CEO of Salix stated, “When we announced our agreement to merge with Cosmo Technologies in July, we believed the combination would generate significant value for our stockholders through the addition of key products to our development pipeline and a more efficient corporate structure that would enhance our profitability. Since then, however, the changed political environment has created more uncertainty regarding the potential benefits we expected to achieve. As a result, Salix and Cosmo have mutually agreed to terminate the proposed transaction. We look forward to a continuation of our long-standing relationship with Cosmo.” 

Source: Salix Pharmaceuticals