Acquisition of Alaven completed

Acquisition of Alaven completed

   •  Meda gains

       - Strengthened position in the strategic US market

       - Entry into gastroenterology and women's health; areas that Meda
operates in
         outside of the US

       - Adds OTC platform in the US

 

   •  Purchase price of 350 MUSD (cash and debt free basis), equivalent
to 8
      times EBITDA before synergies

 

   •  Significant synergies.

Meda has completed the acquisition of Alaven and has taken over its
operations. The acquisition will benefit Meda both short term and long
term. The acquisition will add the therapeutic focus to include both
gastroenterology and women's health; areas that Meda operates in outside
of the US. In addition, Alaven has a strategic OTC platform that
accounts for approximately 25% of sales. Alaven will further diversify
Meda's revenue base in the US, as well as serve as a platform for
commercializing strategic pipeline opportunities.

In line with earlier acquisitions, the intention is to swiftly integrate
Alaven into Meda. This will involve non-recurring restructuring costs
that will affect operating profit in the near term while improving
future profitability of the combined companies. Mr. Bala Venkataraman,
Alaven's CEO, has been appointed President of the combined US companies
that will operate under the name Meda Pharmaceuticals Inc.

Meda's strategy is to increase its focus on specialty markets and with
this acquisition, the proportion of specialist products in Meda's
portfolio in the US has increased. Meda expects these efforts will
streamline and focus its commercial operations as well as other
functions. Synergies during 2011 are expected to be approximately 50
MUSD.

The acquisition is expected to be accretive to Meda's earnings per share
during 2011. The transaction was fully financed by Meda's existing
credit facilities.

 

 

 

If questions, please contact: Anders Larnholt, Vice President Corporate
Development & IR ph: +46 709-458 878