Date: 2012-10-15
Type of information: Product acquisition
Compound: health products portfolio including Elestrin®
Company: Meda (Sweden) Jazz Pharmaceuticals (USA)
Therapeutic area: Gynecological diseases - Women's health
Type agreement: portfolio acquisition
Action mechanism:
Disease: Elestrin® (estradiol gel), Gastrocrom® (cromolyn sodium, USP), Natelle® One (prenatal vitamin), AVCTM Cream (sulfanilamide), Gesticare® DHA (prenatal multi-vitamin), Urelle® (urinary antiseptic)
Details: * On September 6, 2012, Meda increases the presence in an area where the company is active. The company has signed an agreement with the U.S. company Jazz Pharmaceuticals to acquire a portfolio of 6 pharmaceutical products focused on Women’s Health. The largest and most important product is Elestrin®, a patented product with sales of almost 100 MSEK (€11.72 million). Elestrin® is indicated for the treatment of moderate-to-severe vasomotor symptoms (i.e. hot flashes) associated with menopause. Since the launch in 2007, Elestrin® has become a leading brand in the topical ERT (estrogen replacement therapy) market. Together with Meda’s present portfolio of products in the therapy area of Women`s Health the sales will be over 500 MSEK (€58.6 million). An experienced sales force of about 60 reps also joins Meda. The closing of the acquisition is subject to the satisfaction of customary closing conditions and regulatory approvals, including antitrust approvals. With an anticipated closing of the acquisition during the 4th quarter this year, the effect on Meda’s earnings per share is expected to be accretive already during 2013.
Financial terms: The purchase price is $ 95 million (€75.1 million), corresponding to 3 times sales. Meda’s existing credit facilities will finance the acquisition.
Latest news: * On October 15, 2012, Jazz Pharmaceuticals has announced the closing of the sale of its women's health business to Meda for $95 million in cash. The products included in the sale are Elestrin® (estradiol gel), Gastrocrom® (cromolyn sodium, USP), Natelle® One (prenatal vitamin), AVCTM Cream (sulfanilamide), Gesticare® DHA (prenatal multi-vitamin) and Urelle® (urinary antiseptic). For accounting purposes, the women's health business will be treated as a discontinued operation.
