QLT sells Acne drug to Allergan

Under the terms of the agreement, QLT will receive a one-time payment of approximately $150m. Payment will be made upon closing of the deal, which is expected to take place in the Q3 2008.

Although licensed for treatment in the US and Canada over three years ago, Aczone was never marketed. QLT carried out further clinical trials after the FDA ordered a label restriction requiring blood screening before treatment. Earlier this year, the FDA removed the requirement for this restriction.

Bob Butchofsky, president and CEO of QLT said: "The divestment of Aczone is a major milestone for QLT and this transaction demonstrates that our persistence in completing the work needed to remove the blood monitoring restriction from the Aczone label in the United States provided significant value for our shareholders."

This is the second asset purchase agreement to divest non-core assets that the company has entered into since announcing its strategic restructuring earlier this year.