STOCKHOLM, Sweden, Nov. 18, 2002 (PRIMEZONE) -- Meda AB (Other OTC:MDABF) (Stockholm:MEDAa), the Swedish Specialty Pharmaceutical Company, has agreed to a deal with the GlaxoSmithKline Group (GSK) on products for local treatment of inflammatory diseases in the distal bowel, marketed under the brand names Colifoam(R) and Proctofoam(R). Meda has also acquired Epifoam(R), a product development of Proctofoam, which Meda plans to introduce to the markets.
Colifoam and Proctofoam are marketed by GSK in many European countries and in a few overseas markets. Meda acquires the products in all the GSK markets. At present, the majority of sales is generated in the U.K. market. The annual turnover of the products is around 55 MSEK and the agreement is structured as a cash deal where GSK will receive GBP 7,9m.
"We are very satisfied to announce this deal with GSK. The products fit perfectly into one of Meda's major therapy areas, the gastrointestinal. Meda is currently marketing Colifoam in Sweden, and through this deal we acquire products that we already know and like. We can now broaden our territory and increase our gross margin in Sweden. And above all, it's a significant contribution to our UK operations. We are also very glad to have finalised another product acquisition from the GSK group. One year ago Meda acquired Relifex (nabumetone) from GSK," said Anders Lonner, CEO of Meda.
"Meda has proven itself to be a good partner for Colifoam in Sweden. We are pleased to have concluded this agreement and we are confident that the products are in good hands," said John Clarke, President, GlaxoSmithKline Consumer Healthcare, Europe.
New share issue
In connection with this acquisition and other business opportunities, Meda's board of directors has decided to propose a new share issue of approximately 125 MSEK. The new share issue with preferential right for existing shareholders is fully guaranteed by Meda's main shareholders, Volati B.V. and Stena Sessan Rederi AB. The board will soon call to an extra ordinary general meeting.
For further information, please contact:
Anders Lonner, CEO Meda AB tel. +46 8 630 19 00
Meda AB (publ) -- The Swedish Specialty Pharmaceuticals Company. Meda is listed on the Stockholm Stock Exchange. Meda markets prescription and over-the-counter drugs and medical equipment.
GlaxoSmithKline -- one of the world's leading research-based pharmaceutical and healthcare companies -- is committed to improving the quality of human life by enabling people to do more, feel better and live longer.
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