Date: 2011-04-07
Type of information: Product acquisition
Compound: Elidel® (pimecrolimus)
Company: Novartis (Switzerland) Meda (Sweden)
Therapeutic area: Dermatological diseases
Type agreement: global rights
Action mechanism: immunomodulating agent
Disease: atopic dermatitis
Details: Novartis has signed an agreement to sell to Meda (Sweden) the global rights to manufacture, market and commercialize Elidel® (pimecrolimus) Cream 1%, a medicine to treat mild to moderate atopic dermatitis. This agreement reflects Novartis strategy to focus commercialization on new launch portfolio and core brands. The agreement will be filed for review with the US and certain other antitrust authorities and, subject to certain closing conditions set forth in the agreement, the transaction is expected to close during the second quarter 2011.
Financial terms: Upon closing, Novartis will receive an upfront payment of $ 420 million from Meda which will assume the global manufacturing of Elidel® within three years after closing. The accounting gain is expected to be about $ 406 million - approximately $ 345 million to be recognized by the end of 2011 and the remainder in 2012 and 2013.
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