Disposal of the PHOTOFRIN PHOTOBARR Product Line

12 Months Ended

Sep. 30, 2011

Disposal of the PHOTOFRIN PHOTOBARR Product Line [Abstract]

Disposal of the PHOTOFRIN PHOTOBARR Product Line

7.	Disposal of the PHOTOFRIN/PHOTOBARR Product Line

On March 28, 2011, The Company entered into a definitive agreement with Pinnacle Biologics, Inc., which acquired all global assets and rights related to PHOTOFRIN/PHOTOBARR, including inventory, for non-contingent payments amounting to $4,252,000. In addition to the non-contingent payments, additional payments shall be made to the Company after the achievement of certain milestones events. In addition, the Company will be paid royalties on annual net sales of PHOTOFRIN/PHOTOBARR.

During the year ended September 30, 2011 the Company recorded a loss of $7,365,000 as a result of the disposal of the PHOTOFRIN/PHOTOBARR product line. Consideration for additional contingent payments to be made to the Company, for which there is significant uncertainty, shall be recorded as a gain in the period in which they are received.

Aptalis Pharma Inc 10-K