Medeva beefs up France and US with pounds 258m buy

Medeva, the pharmaceuticals group, yesterday announced a large expansion in the US and France with the $400m (pounds 258m) acquisition of rights to drugs and other assets from Rhone-Poulenc Rorer, the US-owned French drug company.

The US assets were acquired by RPR when it took over Fisons last year and include the group's former US headquarters at Rochester in New York State. They were spotted by Medeva as under-exploited during its abortive merger talks with Fisons.

The deal is being part-financed through a pounds 109m placing, with existing shareholders being offered the new shares on a one-for-six basis at 220p. The move was well received by analysts, who said it would be earnings- enhancing. Shares in Medeva jumped 30p to 261p.

Bill Bogie, chief executive, described the two acquisitions as "Medeva's most significant step forward in terms of both its operations and its potential to deliver earnings growth for shareholders". He said the deal took the group's strategy on several stages.

It gave them critical mass in France and the US. In the former, Dr Bogie said the acquisition of rights to respiratory, dermatological and non- prescription drugs would allow Medeva to cover the cost of the existing sales force, the marketing spend that goes with it and help to support new product launches.

The deals also give the group Fisons' pennkinetic slow release technology, which can be applied to products within Medeva's development pipeline, such as its Hepagene hepatitis vaccine and anaesthetics acquired last year. That would help turn the group into a fully-fledged pharmaceutical company into the next century, Dr Bogie said.

But he described the 10 products being acquired with the Rochester business as "a classic Medeva opportunity". In the six years of its life, the company had been good at generating and re-generating growth in the products its owns, he said, and the Rochester products had not had the support they required to generate growth.

The main drug being acquired is Tussionex, a treatment for heavy coughs, which generated $31.5m of the $99.7m sales produced in total by the US products last year. Delsym, a slow-release cough treatment for children, Pediapred, a steroid for treating a range of allergic to inflammatory conditions, Zaroxolyn, for heart and kidney failure, and Ionamin, an appetite suppressant, are also coming aboard in the deal.

Operating profits from the US drugs have grown from $36.3m to $54.4m in the last three years.

Arts and Entertainment
The cast of The Big Bang Theory in a still from the show
tvBig Bang Theory filming delayed by contract dispute over actors' pay
Sport
England celebrate a wicket for Moeen Ali
sportMoeen Ali stars with five wickets as Cook's men level India series
News
peopleGuitarist, who played with Aerosmith, Lou Reed and Alice Cooper among others, was 71
Travel
travel
PROMOTED VIDEO
News
ebookA unique anthology of reporting and analysis of a crucial period of history
Life and Style
food + drinkVegetarians enjoy food as much as anyone else, writes Susan Elkin
Arts and Entertainment
Harry Potter (Daniel Radcliffe), Hermione Granger (Emma Watson) and Ron Weasley (Rupert Grint)
newsBloomsbury unveils new covers for JK Rowling's wizarding series
News
scienceScientists try to explain the moon's funny shape
Sport
Usain Bolt confirms he will run in both the heats and the finals of the men's relay at the Commonwealth Games
commonwealth games
News
peopleHowards' Way actress, and former mistress of Jeffrey Archer, was 60
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

1st Line Support Technician / Application Support

£20000 - £24000 per annum: Harrington Starr: A leading provider of web based m...

Team Secretary - (Client Development/Sales Team) - Wimbledon

£28000 - £32000 per annum: Ashdown Group: Secretary (Sales Team Support) - Mat...

Accountant / Assistant Management Accountant

Competitive (DOE): Guru Careers: We are looking for an Assistant Management Ac...

Senior Investment Accounting Change Manager

£600 - £700 per day + competitive: Orgtel: Senior Investment Accounting Change...

Day In a Page

Save the tiger: The day America’s love of backyard tigers led to a horrific bloodbath

The day America’s love of backyard tigers led to a horrific bloodbath

With only six per cent of the US population of these amazing big cats held in zoos, the Zanesville incident in 2011 was inevitable
Samuel Beckett's biographer reveals secrets of the writer's time as a French Resistance spy

How Samuel Beckett became a French Resistance spy

As this year's Samuel Beckett festival opens in Enniskillen, James Knowlson, recalls how the Irish writer risked his life for liberty and narrowly escaped capture by the Gestapo
We will remember them: relatives still honour those who fought in the Great War

We will remember them

Relatives still honour those who fought in the Great War
Star Wars Episode VII is being shot on film - and now Kodak is launching a last-ditch bid to keep celluloid alive

Kodak's last-ditch bid to keep celluloid alive

Director J J Abrams and a few digital refuseniks shoot movies on film. Simon Usborne wonders what the fuss is about
Once stilted and melodramatic, Hollywood is giving acting in video games a makeover

Acting in video games gets a makeover

David Crookes meets two of the genre's most popular voices
Could our smartphones soon be diagnosing diseases via Health Kit and Google Fit?

Could smartphones soon be diagnosing diseases?

Health Kit and Google Fit have been described as "the beginning of a health revolution"
Ryanair has turned on the 'charm offensive' but can we learn to love the cut-price carrier again?

Can we learn to love Ryanair again?

Four recent travellers give their verdicts on the carrier's improved customer service
Billionaire founder of Spanx launches range of jeans that offers

Spanx launches range of jeans

The jeans come in two styles, multiple cuts and three washes and will go on sale in the UK in October
10 best over-ear headphones

Aural pleasure: 10 best over-ear headphones

Listen to your favourite tracks with this selection, offering everything from lambskin earmuffs to stainless steel
Commonwealth Games 2014: David Millar ready to serve up gold for his beloved Scotland in the end

Commonwealth Games

David Millar ready to serve up gold for his beloved Scotland in the end
UCI Mountain Bike World Cup 2014: Downhill all the way to the top for the Atherton siblings

UCI Mountain Bike World Cup

Downhill all the way to the top for the Atherton siblings
Save the tiger: The animals bred for bones on China’s tiger farms

The animals bred for bones on China’s tiger farms

The big cats kept in captivity to perform for paying audiences and then, when dead, their bodies used to fortify wine
A former custard factory, a Midlands bog and a Leeds cemetery all included in top 50 hidden spots in the UK

A former custard factory, a Midlands bog and a Leeds cemetery

Introducing the top 50 hidden spots in Britain
Ebola epidemic: Plagued by fear

Ebola epidemic: Plagued by fear

How a disease that has claimed fewer than 2,000 victims in its history has earned a place in the darkest corner of the public's imagination
Chris Pratt: From 'Parks and Recreation' to 'Guardians of the Galaxy'

From 'Parks and Recreation' to 'Guardians of the Galaxy'

He was homeless in Hawaii when he got his big break. Now the comic actor Chris Pratt is Hollywood's new favourite action star