Sweden's Meda has acquired the global distribution rights and all assets related to the erectile dysfunction treatment Muse from the USA's Vivus.
The Solna-headquartered group Meda will make an upfront fee of $22 million and a potential milestone payment of $1.5 million based on the product's future sales. Meda has held the distribution rights to Muse (alprostadil) "for many years" and a company spokesman told PharmaTimes World News that sales in Europe last year amounted to around 50 million Swedish kroner, about 5.4 million euros. Its largest market on the continent is the UK.
However the biggest market for the treatment, which is administered into the opening at the end of the penis, is the USA. Annual sales there are approximately $15 million and Meda expects the transaction to close within 60 days.
Alaven buy completed
Meda has also completed its $350 million acquisition of Alaven, a US firm that specialises in gastroenterology and women’s health. The company, which is paying eight times earnings before interest, taxes, depreciation and amortisation before synergies, says that Alaven will further diversify its revenue base in the USA, "as well as serve as a platform for commercialising strategic pipeline opportunities".
Synergies during 2011 are expected to be $50 million, and the acquisition should be accretive to earnings per share next year. The cash transaction was fully financed by Meda’s existing credit facilities.