Sweden's Meda has boosted its presence in the USA by spending $95 million to acquire the women's health business of Jazz Pharmaceuticals.
The purchase involves a portfolio of six pharmaceutical products which had net sales of $30.4 million in 2011. About half of that total came from Elestrin (estradiol gel) for the treatment of hot flashes associated with menopause.
As part of the transaction, Meda will offer jobs to 60 Jazz sales reps and together with its present portfolio of products, the Solna-headquartered firm's women`s health sales will be in the region of $75 million. Meda chief executive Anders Lonner said that "we can now strengthen the product offering in the USA as well as expand our sales force with people that have good experience and an excellent track-record".
Jazz recently acquired Eusa Pharma, and its leukaemia therapy Erwinaze (asparaginase Erwinia chrysanthemi), in a deal worth up to $700 million and chief executive Bruce Cozaad said the Meda sale "is consistent with our strategy of concentrating our efforts on our core products in highly focused markets". Currently the firm's biggest-seller is the narcolepsy drug Xyrem (sodium oxybate).
The deal, which is subject to regulatory and antitrust approvals, should close in the fourth quarter and should be accretive to Meda’s earnings per share during 2013.