Strategic Acquisition of MedPointe Inc Completed

Meda announced that it had signed an agreement to acquire all shares in MedPointe. This strategic acquisition has now been completed and consolidation of MedPointe starts immediately. Meda plans to give further information on the acquisition and its impact on Meda in the interim report for the third quarter - to be released on 30 October 2007.

The final purchase price for MedPointe was 5 229 MSEK. This price consisted of 520 MUSD in cash and 17,5 million newly issued Meda shares. The cash component of 520 MUSD was hedged at SEK/USD 6,74 and compared to the current exchange rate this is equivalent to a positive effect of about 100 MSEK. The cash payment was therefore 3 506 MSEK, an amount fully financed through an existing credit facility. The book value of the newly issued shares was set to 98,50 SEK per share. New shareholders in Meda are The Carlyle Group, The Cypress Group LLC, and other US investors, who will have a combined shareholding in Meda of approximately 7%.

The strategic acquisition of MedPointe will establish Meda as a world-class specialty pharma company with full marketing coverage both in the US and Europe and with revenues of around 9 billion SEK. The acquisition of MedPointe is expected to be accretive to Meda's earnings per share at the latest during 2009.

MedPointe is a fast growing US-based specialty pharma company focused on two of Meda's priority areas, Allergy / Respiratory and Pain. The product portfolios are highly complementary. MedPointe's net sales in 2006 were 252 MUSD, representing a 23% growth in local currency compared to previous year. Net sales for the first half of 2007 amounted to around 145 MUSD, which, on an annualised basis, is equivalent to a purchase price revenue multiple of around 2,6. On a pro forma basis, Meda's US operation accounts for about 20% of annual sales.

Meda's pipeline which is open for the US market can now be commercialised in own regimen through a wholly-owned subsidiary and thereby retaining 100% of the value of the product assets. Likewise Meda, through its strong European organisation, will be able to capitalise on product development opportunities based on MedPointe's pipeline. The new transatlantic combination will enable Meda to develop synergies both as to geographical markets and product portfolios.

About MEDA AB
MEDA AB (publ) is an international specialty pharma company that concentrates on marketing and market-adapted product development. Acquisitions and long-term partnerships are fundamental factors that drive the company's strategy. Meda is represented with own organisations 26 countries and with more than 1 500 employees within marketing and sales. Meda's products are sold in approximately 120 countries world-wide. The Meda share is listed under Large Cap on the OMX Nordic Stock Exchange. Find out more, visit www.meda.se.

Most Popular Now

AstraZeneca enters license agreement with KYM Bios…

AstraZeneca and KYM Biosciences Inc.* have entered into a global exclusive licence agreement for CMG901, a potential first-in-class antibody drug conjugate (ADC) targetin...

Pill for skin disease also curbs excessive drinkin…

Researchers from Oregon Health & Science University and institutions across the country have identified a pill used to treat a common skin disease as an "incredibly promi...

Pfizer's elranatamab receives FDA and EMA filing a…

Pfizer Inc. (NYSE:PFE) announced today that the U.S. Food and Drug Administration (FDA) has granted Priority Review for the company's Biologics License Application (BLA) ...

Pfizer receives positive FDA Advisory Committee vo…

Pfizer Inc. (NYSE: PFE) announced that the U.S. Food and Drug Administration's (FDA) Vaccines and Related Biological Products Advisory Committee (VRBPAC) voted that avail...

"Semantic similarity" leads to novel dru…

The words that researchers use to describe their results can be harnessed to discover potential new treatments for Parkinson's disease, according to a new study published...

US FDA Advisory Committee votes to support effecti…

GSK plc (LSE/NYSE: GSK) announced that the US Food and Drug Administration (FDA) Vaccines and Related Biological Products Advisory Committee (VRBPAC) voted that the avail...

Tumour cells' response to chemotherapy is driven b…

Cancer cells have an innate randomness in their ability to respond to chemotherapy, which is another tool in their arsenal of resisting treatment, new research led by the...

Nanosatellite shows the way to RNA medicine of the…

The RNA molecule is commonly recognized as messenger between DNA and protein, but it can also be folded into intricate molecular machines. An example of a naturally occur...

Gene and cell therapies to combat pancreatic cance…

Pancreatic cancer is an incurable form of cancer, and gene therapies are currently in clinical testing to treat this deadly disease. A comprehensive review of the gene an...

First nasal monoclonal antibody treatment for COVI…

A pilot trial by investigators from Brigham and Women's Hospital, a founding member of the Mass General Brigham healthcare system, tested the nasal administration of the ...

Digital twin opens way to effective treatment of i…

Inflammatory diseases like rheumatoid arthritis have complex disease mechanisms that can differ from patient to patient with the same diagnosis. This means that currently...

AI conjures proteins that speed up chemical reacti…

For the first time, scientists have used machine learning to create brand-new enzymes, which are proteins that accelerate chemical reactions. This is an important step in...