Hi-Tech Pharmacal Acquires Rights to TussiCaps Extended-Release Capsules to Be Promoted by Their ECR Pharmaceuticals Subsidiary

Hi-Tech Pharmacal Co., Inc. HITK today announced it has acquired the marketing and distribution rights for TussiCaps® (hydrocodone polistirex and chlorpheniramine polistirex) extended-release capsules from Mallinckrodt LLC. The product is indicated for the treatment of cough and upper respiratory symptoms associated with allergy or a cold in adults and children 6 years of age and older. The product is available in 10mg/8mg and 5mg/4mg formulations. TussiCaps® is the only FDA approved extended-release prescription cough/cold capsule product on the market. Reuben Seltzer, Vice Chairman of Hi-Tech Pharmacal said, “We believe TussiCaps® is an excellent fit for ECR Pharmaceuticals based on our focus on primary care physicians in the cough/cold area. The 12-hour release and capsule dosage form provide accurate and convenient dosing for adult and pediatric patients.” The Company paid $11.6 million in cash, and depending on the competitive landscape and sales performance, may make payments of up to $12.5 million more over the next four years. The purchase price includes certain intellectual property and inventory on hand. The brand had sales of $9.4 million for the 12-month period ended June 2011 according to IMS. TussiCaps® is covered by a patent which will not expire until May 2025.