Since joining Apricus as Chief Executive Officer in March 2013, our strategy has been to develop, seek regulatory approval for, and monetize our novel pipeline assets. This strategy, which has the full support of our Board of Directors and our major shareholders, continues to guide Apricus as we seek to create long-term shareholder value.
On March 8, 2017, and consistent with this strategy, we announced the sale of the ex-U.S. assets and rights related to Vitaros, our on-demand topical erectile dysfunction product. Under the terms of the agreement, Ferring agreed to pay Apricus an upfront payment of $11.5 million, due upon closing, up to an additional $700,000 with respect to certain product inventory and an amount equal to $500,000, payable over two calendar quarters, for transition assistance, subject to certain limitations. Ferring is Apricus’ existing commercialization partner for Vitaros in Latin America and certain parts of Europe and Asia.
Apricus will retain its Vitaros rights in the U.S., which are in-licensed from Allergan, as well as global rights to our pipeline asset RayVa for the treatment of Raynaud’s phenomenon. Apricus will also retain certain interests in the proprietary permeation enhancer DDAIP in the United States.
I am excited to lead Apricus forward with this compelling development pipeline, significant near-term potential milestones, a stronger, debt-free balance sheet, the elimination of certain substantial ex-U.S. Vitaros future liabilities, and lower quarterly operating expenses. Most importantly, this transaction allows us to focus our financial resources on the single most important growth driver: obtaining U.S regulatory approval for Vitaros, for which we have NDA resubmission slated for the third quarter of this year.
Finally, I want to thank you for your continued support and new interest in Apricus. I look forward to updating you on our progress during our fourth quarter and full year 2016 financial results conference call that we’ve scheduled for March 13, 2017.
Richard W. Pascoe
Chief Executive Officer