Print“:This acquisition is in-line with our strategic priorities to execute value-accretive M&A;, invest in consumer healthcare and Emerging Markets, says Jorg-Thomas Dierks, CEO of Meda.”
Swedish specialty pharma Meda said it would buy Italian specialty pharma Rottapharm in a deal valued at $3.1 billion that will bolster Meda’s consumer healthcare business. Rottapharm, owned by the Rovati family, had just recently withdrawn plans for an initial public offering due to poor market conditions.
Meda will pay $2.2 billion in cash and 30 million Meda shares valued at $479 million, plus a non-contingent deferred payment in January 2017 of $377 million. The Rovati family will own 9 percent of the combined company.
“From our foundation in 1961, we have built Rottapharm into a leading consumer-focused branded specialty pharma business, leveraging our heritage in science and clinical development,” says Luca Rovati, CEO of Rottapharm.
The drugmaker is mainly focused on branded consumer healthcare products, combining Rx-reimbursed medications with more traditional consumer healthcare products with gross margins as high as 67 percent. Consumer healthcare products account for 75 percent of Rottapharm’s revenue.
“The acquisition of Rottapharm is an important step in creating a stronger, improved Meda”, says Jörg-Thomas Dierks, CEO of Meda. “Rottapharm is a preeminent specialty pharma company with highly differentiated brands and a leading position within consumer healthcare. The combined business will have an improved Rx / Cx balance and increased investment opportunities. This acquisition is in-line with our strategic priorities to execute value-accretive M&A, invest in consumer healthcare and Emerging Markets.”
The deal allows Meda to reach not only reach more physicians, pharmacists and consumers, but also to offer them a broader portfolio of products. It sees consumer healthcare as an attractive space with fewer pricing issues because it is not reimbursed and less generic competition. Meda says the combined company will be balanced with 60 percent of its portfolio in reimbursed drugs and 40 percent in the non-reimbursed consumer healthcare products.
The deal, which requires regulatory approval, is expected to close by the end of the year.
August 04, 2014
http://www.burrillreport.com/article-meda_to_acquire_rottapharm_for_3_1b_.html
