UCB has closed the definitive agreement for the transfer of its US specialty generics subsidiary, Kremers Urban Pharmaceuticals, to Lannett Company.

UCB will receive upfront cash payments of $ 1.23 billion upon closing. Upon the terms of the transaction, UCB is also eligible to receive contingent payments for methylphenidate HCI ER in the event that the product’s AB-rating is restored.

The earnings obtained from the divestiture will be used by UCB to reduce indebtedness and increase the company’s capacity for strategic investments, and to further accelerate growth and further strengthen its innovative medicines pipeline.