ADVANZ PHARMA Corp., an international specialty pharmaceutical company focused on serving the needs of patients and healthcare providers around the world with enhanced access to high quality, niche-established medicines, today announced it acquired the rights to two established medicines, Salagen® (pilocarpine hydrochloride) and Panretin®, from Eisai Inc. for $30 million in cash plus approximately $3.3 million for purchased inventory and related prepayments.
ADVANZ PHARMA will pay for the acquisition with cash on hand.
“We believe these medicines are excellent strategic fits with our global commercial infrastructure and are well aligned with our product acquisition focus,” said Graeme Duncan, Chief Executive Officer of ADVANZ PHARMA. “In addition, the transaction demonstrates that the Company has returned as a participant in the global M&A marketplace, and reinforces our commitment to our new strategy, known as PLAN.”
Terms of the agreement include a cash payment of $30 million plus approximately $3.3 million for purchased inventory and related prepayments from ADVANZ PHARMA from its cash on hand to Eisai, in return for the global rights to Salagen® tablets (excluding Japan); and for the global rights to Panretin® gel.
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Salagen® indications include the treatment of symptoms of dry mouth from salivary gland hypofunction caused by radiotherapy for cancer of the head and neck, and the treatment of symptoms of dry mouth in patients with Sjogren’s Syndrome.
Panretin® indications include the topical treatment of cutaneous lesions in patients with AIDS-related Kaposi’s sarcoma (KS). Panretin® gel is not indicated when systemic anti-KS therapy is required (for example, more than 10 new KS lesions in the prior month, symptomatic lymphedema, symptomatic pulmonary KS, or symptomatic visceral involvement). There is no experience to date using Panretin® gel with systemic anti-KS treatment.
Combined, Salagen® and Panretin® generated approximately $13 million in revenue in 2018 in the territories where ADVANZ PHARMA will hold the rights.
The acquisition announced today follows the Company’s recent rebranding to ADVANZ PHARMA in the fourth quarter of 2018, and the completion of its recapitalization in September 2018.
Looking ahead, with a clear strategic focus, ADVANZ PHARMA believes it will have additional opportunities to expand its product portfolio to deliver mid-term value and long-term growth, through further acquisitions, pipeline expansion, optimisation, and licensing and development partnerships. The Company intends to focus on niche and differentiated generics, complex specialty and value-added medicines.
PLAN Strategy
In 2019, as previously disclosed, the Company will focus on implementing its PLAN strategy, an acronym that stands for:
P – product expansion
L – leverage global capability
A – acquire and integrate
N – new start and vision
Date: April 08, 2019
Source: Cision
