Swedish pharma firm Meda to acquire Medpointe

23 July 2007

Swedish pharma company Meda AB has announced its agreement to acquire Somerset, New Jersey-based MedPointe Inc, a privately owned firm, for $520 million in cash and 17.5 million new shares.

The combined entity will have revenue of about $1.4 billion, though the completion of the transaction is dependent on US antitrust approval.

Private equity firms Carlyle Group and Cypress Group, the main shareholders of MedPointe will get a total stake of about 6 per cent in Meda, Frazier Healthcare Ventures, Ferrer Freeman & Co and MedPointe''s management have also decided to become shareholders in Meda.

Newly issued Meda shares will be subject to a lock-up period of 12 to 18 months.

"The acquisition establishes Meda as a world-class specialty pharma company with full marketing coverage both in the US and Europe," Meda said in a statement.

MedPointe, is a speciality pharma company focusing on allergy, respiratory and pain segments and had net sales of $252 million in 2006. The company''s biggest products, Astelin and Optivar, both contain the active substance azelastine and Meda has been collaborating with MedPointe on azelastine for the last five years and worked closely on product supply.