Cumberland Pharmaceuticals Inc. (NASDAQ: CPIX), a specialty pharmaceutical company, has signed a definitive agreement to acquire VIBATIV from Cayman Islands–based Theravance Biopharma, it was reported yesterday.

The product is a patented, FDA approved anti-infective for the treatment of certain serious bacterial infections including hospital-acquired and ventilator-associated bacterial pneumonia and complicated skin & skin structure infections. It is claimed to address a range of Gram-positive bacterial pathogens, including those that are considered difficult-to-treat and multidrug-resistant.

According to the terms of the contract, Cumberland will assume full responsibility for the product including its marketing, distribution, manufacturing and regulatory activities. Cumberland will support VIBATIV in the United States through its established hospital sales organisation. The firm expects to selectively expand its sales force, medical science liaison and corporate teams to ensure the needed support of VIBATIV and its oncology and acute care brands. The financial terms include a USD20m payment to Theravance Biopharma upon closing, a USD5m additional payment in early 2019, and tiered royalties of up to 20% on future US net product sales. Cumberland expects that the addition of VIBATIV will be accretive to the company's earnings.