Meda Lands In U.S. OTC Space With Alaven Buy
This article was originally published in The Tan Sheet
Executive Summary
Meda Pharmaceuticals acquires a larger U.S. presence with an eye on OTC growth, including potential switch candidates
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Meda Pharmaceuticals acquires a larger U.S. presence with an eye on OTC growth, including potential switch candidates. The Swedish firm announced Aug. 30 its purchase of Alaven Pharmaceutical, including the Alaven Consumer Healthcare business, for $350 million in cash. Alaven attributes approximately 25 percent of its $108 million in annual sales to OTCs, including Bifera iron supplements, UniFiber fiber supplements and Toxinout detoxification products. Much like Sanofi-Aventis' acquisition of Chattem, albeit on a smaller scale, Meda plans to extend Alaven's nonprescription business and use it as a platform for product launches and Rx-to-OTC switches (1 (Also see "Sanofi Eyes Chattem As Key Building Block For Global OTC Growth" - Pink Sheet, 4 Jan, 2010.)). Meda's portfolio of OTCs in Europe comprises about 10 percent of its sales, "and we are exploring which ones to bring to the U.S. and other important markets," Anders Larnholt, Meda's VP of corporate development and investor relations, said in an e-mail. Meda sells Betadine iodine-based antiseptic, Dermatix anti-scarring silicone gel and other OTCs in European markets. It also has North American rights to Medivir's Xerese (acyclovir and hydrocortisone) cold sore treatment and sells Astelin (azelastine hydrochloride) allergy relief nasal spray - both regarded as high-potential switch candidates (2 (Also see "Rx-to-OTC Switch Interest Explodes Following Deal Activity - Experts" - Pink Sheet, 11 Jan, 2010.) and 3 (Also see "GSK Expands Consumer Business With Acquisition Of OTC Cold Sore Products" - Pink Sheet, 28 Jun, 2010.)). With 150 of its 180 employees dedicated to marketing and sales, Marietta, Ga.-based Alaven does not bring manufacturing infrastructure to the deal. However, Meda already has a U.S. unit based in Somerset, N.J., that operates a Decatur, Ill., manufacturing facility. "The acquisition of Alaven enables our operations in the U.S. to become stronger and more profitable by taking advantage of cost and marketing synergies," Meda CEO Anders Lonner said in a release. Meda expects the acquisition to close by early October and be accretive to its earnings in 2011. - Dan Schiff ( 4 [email protected] ) |