British-based respiratory drug specialist Vectura and Skyepharma have executed a merger agreement whereby the former will acquire the latter for nearly £441.3m.
The merger will create a speciality pharmaceutical company that will focus on developing pharmaceutical therapies for airways diseases.
Vectura currently develops inhaled products to address unmet needs in airways diseases, while Skyepharma develops inhalation and oral modified release pharmaceutical products.
Skyepharma chairman Frank Condella said: "The merger of Skyepharma and Vectura is a highly synergistic, value-enhancing transaction that will establish an industry leader in the development of inhalation products.
"Underpinned by Skyepharma’s strong recurring revenue growth, the merger combines Skyepharma’s proven capabilities to develop both pressurised metered dose inhaler and dry powder inhaler products with Vectura’s proven capabilities to develop DPI and smart nebulisation products, addressing the $35bn global inhaled respiratory market."
Upon completion, this deal will bring together the two companies’ complementary inhaled formulation, development regulatory and device expertise.
As per the agreed terms, Skyepharma shareholders will own a 41.75% stake in the combined company.
Vectura has agreed to pay 410.15 pence per Skyepharma share.
The combined company will develop a wide range of next-generation devices and products more rapidly.
Vectura’s existing DPI capabilities and smart nebulisation technologies do not address the 38% of the global inhaled respiratory market, which is served by pMDI products.
The addition of Skyepharma’s capabilities will allow the combined company reach the wider global inhaled respiratory market.
The company formed will have the financial capacity and technical capabilities to accelerate the progression of new generic programmes (DPI and pMDI), novel product developments, such as SKP-2075, as well as sign additional deals with companies developing novel molecules targeting the airways markets.
Image: Vectura currently develops inhaled products to address unmet needs in airways diseases. Photo: courtesy of marin / FreeDigitalPhotos.net.