Jazz Pharma spins off women’s health business for $95m
US-based pharmaceutical company Jazz Pharmaceuticals has announced a deal to sell its women's health business to Meda for $95m in cash.
Meda will add six Jazz products to its portfolio through the sale, including prenatal multivitamin Gesticare DHA, urinary antiseptic Urelle and estradiol gel Elestrin. The six products reported combined net sales of $30.4m in 2011.
As per the terms of the agreement, Meda will offer 60 current employees of Jazz Pharmaceuticals positions within Meda to continue their support of the products.
Meda chief executive Anders Lonner praised the deal, citing its potential to create positive marketing synergies within the women's health area.
"We can now strengthen the product offering in the US as well as expand our sales force with people that have good experience and excellent track-record," said Lonner.
Jazz Pharmaceuticals chairman and CEO Bruce Cozadd said; "This transaction is consistent with our strategy of concentrating our efforts on our core products in highly focused markets. We believe that Meda will provide an excellent environment for the women's health team to continue to execute and grow this business within an organization that has an expanding commercial presence serving the women's health area."
The deal is subject to customary closing conditions as well as regulatory and antitrust approvals, but is expected to close in the fourth quarter of 2012. Meda has noted that due to the timing of the deal, earnings per share is expected to be accretive during 2013.