Sinclair IS Pharma has sold Mysoline, its drug for essential tremor, for £11.1 million to Laboratoires Serb SAS of France.
The UK company said the sale is in line with its strategy to dispose of non-strategic assets and focus on dermatology, wound care and its hospital supportive care products. Mysoline (primidone) is indicated for certain types of epilepsy, essential tremors and seizures and generated revenues of £3.0 million in the financial year ended March 31.
Chief executive Chris Spooner said the company is "pleased to have secured a good price for a non-core asset". He added that the proceeds will provide "balance sheet flexibility and hence an exciting opportunity for further investment in our core business”.
The deal went down well with analysts and Jefferies issued a research note saying the deal "again demonstrates management's commitment to simplifying the business and should reinforce confidence in its ability to execute on its strategy". The broker added that Sinclair has bagged "an attractive premium for an asset with limited growth potential that does not strategically fit".