Meda acquires European businesses from American Valeant and enters the Russian market

Meda acquires European businesses from American Valeant and enters the Russian
market

 •  Meda acquires Valeant's pharmaceutical business in Western and Eastern
Europe 
    -  Consistent step in Meda's growth strategy 
    -  Sales level of 1 100 MSEK
    -  Organisation of 380 employees 

 •  Meda gains 
    -  Russian entry with own organisation 
    -  Significant market synergies in Eastern Europe  
    -  Strengthened position in Western Europe, especially in the UK
    -  Enhanced position in key therapy areas, neurology and dermatology 

 •  Purchase price on a debt free basis 392 MUSD, equivalent to approx. 2 times
sales

 •  New share issue of about 1 500 MSEK, 100% guaranteed by Stena AB 


Meda has signed an agreement to acquire Valeant's pharmaceutical business in
Western and Eastern Europe. The acquisition will benefit Meda in many different
respects, both short term and long term. It will give Meda the entry into
Russia. In Eastern Europe, it means a potential for significant market synergies
with products in Meda's existing pipeline. In Western Europe, Meda's position
will be strengthened, especially in the UK. The majority of the acquired
products are also within Meda's key therapy areas; neurology and dermatology,
which in-line with the company's focused approach will offer good synergies.

The total sales level of the acquired business is 1 100 MSEK, of which Eastern
Europe account for 200 MSEK. Major markets are Germany, UK, Italy, Spain and
Russia, both in terms of sales and employees. Total headcount is 380 employees.
The 230 employees in marketing and sales primarily visit specialists within
dermatology and neurology. The regional headquarter is based in Basingstoke, UK.


“I'm really glad that we have reached this deal with Valeant. This acquisition
has a perfect fit with our operations in Europe. It also gives a very important
contribution to our strategy to become stronger in Eastern Europe. We now get a
foothold in Russia and we will use that platform to introduce many of our
pipeline products. We also look forward to a long term collaboration in other
areas with Valeant”, says Anders Lonner, CEO Meda. 

Russian entry
The Russian pharmaceutical market is worth around 6 billion USD and growing
rapidly. At present, only a few Meda products are sold in the Russian market.
Valeant's operation in Russia has grown quickly during the last years. A strong
marketing organisation has been established and Meda's plan is to expand this
platform when Meda's current and future products will be launched.

Synergies 
Meda's foresees synergy effects both on cost and revenue side when integrating
organisations in Western Europe. In Eastern Europe, Meda's position in turnover
will double. Several new countries in Eastern Europe are also entered, Russia
being the largest. In these new markets, Meda will now be able to launch certain
existing products and products from its pipeline through own organisations.
Synergies within marketing will also be possible since both companies have
complementary products in both neurology and dermatology. 

Product portfolio
Valeant's product portfolio consists of many well established products. The
majority are specialist products in the key therapeutic areas; neurology and
dermatology. A dominant part of the acquired products have strong trademarks and
are well proven since a long time. 

Neurology
Mestinon (pyridostigmine bromide) is used in the treatment of myasthenia gravis.
Myasthenia gravis is a chronic neuromuscular, autoimmune disorder that causes
varying degrees of fatigable weakness in muscles. Sales during 2007 were about
210 MSEK.
Tasmar (tolcapone) is used in combination with levodopa and carbidopa for the
treatment of patients with severe Parkinson's disease. Sales during 2007 were
approximately 40 MSEK. Market synergies exist with Meda's Parlodel (treatment of
Parkinson's disease).

Dermatology
Solcoseryl (haemodialysate) is used for treating trophic disorders, dry and wet
wounds. The product is used in a variety of medical fields that includes
neurology and surgery. Sales during 2007 were approximately 140 MSEK.
Dermatix is a transparent, topical silicone gel that helps maintain the skin's
moisture balance, improving the appearance and size of scars. Sales during 2007
were approximately 80 MSEK.

Efudix is indicated for topical treatment of multiple actinic or solar keratosis
and superficial basal cell carcinoma. Sales during 2007 were 50 MSEK and market
synergies exist with Meda's Aldara.
Cancer

Cesamet (nabilone) is used for treating patients with chemotherapy-induced
nausea and vomiting (CINV) who fails to respond adequately to conventional
antiemetic treatments. Market synergies exist with Meda's BEMA-Fentanyl which is
in registration phase (treatment of breakthrough pain in cancer patients).

Financial effects and profitability
In line with earlier acquisitions, the intention is to quickly integrate Valeant
into Meda and thereby create a stronger company. This will involve non-recurring
restructuring costs that will affect the operating profit in the near term while
the future profitability can increase. 

The EBITDA margin of the acquired business was around 14% during 2007. As a
consequence of the industrial integration, the ambition is to increase this to
above 30%. Based on the proposed financing, and excluding non-recurring
restructuring costs, the acquisition is expected to be accretive to Meda's
earnings per share already during 2009.

Financing and time table 
Meda will pay to Valeant 392 MUSD in cash on a debt free basis, which is
equivalent to around 2 times sales for the acquired business. Closing of the
transaction is dependent on antitrust approvals. Initially, the purchase will be
financed via bank loans. Meda's board of directors intends to take a decision to
propose a new preferential-rights share issue for existing shareholders to raise
approximately 1 500 MSEK. The details of this proposed issue will be announced
before an extraordinary shareholders' meeting. The new share issue is 100%
guaranteed by Stena AB. 


För mer information kontakta:

Anders Larnholt, Vice President Investor Relations, tel. +46 8 630 19 62, +46
709 458 878
e-mail. 	anders.larnholt@meda.se

MEDA AB (publ) is an international specialty pharma company that concentrates on
marketing and market-adapted product development. Acquisitions and long-term
partnerships are fundamental factors that drive the company's strategy. Meda is
represented with own organisations in 26 countries and with more than 1 500
employees within marketing and sales. Meda's products are sold in approximately
120 countries world-wide. The Meda share is listed under Large Cap on the OMX
Nordic Stock Exchange. Find out more, visit www.meda.se.