Acquisition of European businesses from Valeant completed

Acquisition of European businesses from Valeant completed 

 •  Competition authorities have approved the acquisition of Valeant's business
in Western and Eastern Europe. Meda now takes over the operation.

 •  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




On 4 August 2008, Meda announced that it reached agreement regarding acquisition
of Valeant's pharmaceutical business in Western and Eastern Europe - pending
approval from competition authorities. The authorities have now approved the
purchase, and Meda is taking over the operation. 

The acquisition will benefit Meda 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 within Meda's key therapy areas; neurology
and dermatology, which in-line with the company's focused approach will offer
good synergies.

Meda pays Valeant 392 MUSD on cash on a debt free basis, which is equivalent to
around 2 times sales for the acquired business. Since announcement, Meda has
gradually hedged this purchase and the price is therefore approximately 2 565
MSEK on a cash and debt free basis. 

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. Total headcount is 380 employees. The 230 employees in marketing and
sales primarily visit specialists within dermatology and neurology. 

As earlier announced, Meda's board of directors intends to take a decision to
propose a new preferential rights issue for existing shareholders to raise
approximately 1 500 MSEK. The details of this proposed issue will be announced
before an extraordinary shareholders' meeting expected to be held during turn of
the month October / November. The subscription period is expected to be
completed before year-end. The new share issue is 100% guaranteed by Stena AB. 

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.


For more information, please contact:

Anders Larnholt, Vice President Investor Relations, tel. +46 709 458 878


MEDA AB (publ) is a leading international specialty pharma company. The company
specialises in marketing and pharmaceutical development in late clinical stage.
Acquisitions and long-term partnerships are fundamental factors that drive the
company's strategy. Meda is represented by its own organisations in about 40
countries. Meda's products are sold in 120 countries worldwide. The Meda share
is listed under Large Cap on the OMX Nordic Stock Exchange. Find out more, visit
www.meda.se.