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Chattem

This article was originally published in The Rose Sheet

Executive Summary

Firm pays Sterling Winthrop $16 mil. for the right to market the pHisoDerm brand in the U.S. Canada and Puerto Rico along with certain assets related to the license. The companies announced the transaction June 20 ("The Rose Sheet" June 27, p. 11). In addition, Chattem agrees to pay Sterling an additional $1 mil. if U.S. sales of pHisoDerm exceed $10 mil. in the 12-month period from July 1, 1994 through June 30, 1994 and another $1 mil. in each of the two succeeding 12-month periods if sales go over $11 mil. Annual sales of pHisoDerm in all three areas in which Chattem acquired the marketing rights currently exceed $10 mil

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