Meda acquires Alaven, a US specialty pharma company

Meda acquires Alaven, a US specialty pharma company

   •  Meda acquires Alaven in the US

       - Consistent step in Meda's growth strategy

       - Sales level of about 800 MSEK and profitability on par with
Meda's

       - Organization of approximately 180 employees

       - Reinforces Meda as a global specialty pharma company

 

   •  Meda gains

       - Strengthened position in the strategic US market

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

       - OTC platform in the US

 

   •  Purchase price 350 MUSD on a cash and debt free basis

 

   •  Transaction is fully financed by existing credit facilities

 

   •  Acquisition is expected to be accretive to Meda's earnings per
share during 2011.

Meda has signed an agreement to acquire the US specialty pharmaceutical
company Alaven. The acquisition will significantly enhance Meda's
marketing capabilities in the US and expand the therapeutic focus to
include both gastroenterology and women's health; areas that Meda
already operates in outside of the US.

In addition, Alaven has a strategic OTC platform that accounts for
approximately 25% of sales. The OTC business will further diversify
Meda's revenue base in the US, as well as serve as a platform for
commercializing strategic pipeline opportunities.

Since its founding, Alaven has demonstrated steady increases in sales by
combining acquisition of strategic assets, organic growth on current
products and efficient line extensions. Annual sales are approximately
800 MSEK with EBITDA margins that are similar to Meda's. Alaven has
approximately 180 employees, of which 150 are dedicated to marketing and
sales. All manufacturing is outsourced to third parties.

Alaven's diversified product portfolio consists of several well known
brands. The largest product, Proctofoam (rectal inflammation), has an
annual turnover of about 25 MUSD. Other significant products include
Cortifoam (ulcerative proctitis), Epifoam (primarily indicated for pain
from episiotomy), Levsin (antispasmodic agent, adjunctive therapy in
treatment of peptic ulcers), Rowasa (distal ulcerative colitis), TriLyte
(colonoscopy preparation) and the Prefera brand of prenatal vitamins. In
addition, Alaven has several development opportunities which are
expected to launch over the next three years.

“Alaven's products and business model are very similar to Meda's and we
look forward to integrating their proven capabilities. The acquisition
of Alaven enables our operations in the US to become stronger and more
profitable by taking advantage of cost and marketing synergies. It is
not easy to find US specialty pharma companies of this caliber,
therefore we are very pleased”, said Meda CEO Anders Lönner. 

Meda will pay 350 MUSD on a cash and debt free basis. Net debt is
estimated to 63 MUSD. The acquisition of Alaven is expected to be
accretive to Meda's earnings per share already during 2011. The
transaction is fully financed by Meda's existing credit facilities.
Closing of the transaction is subject to standard closing requirements
and antitrust clearance from the US Federal Trade Commission. The
acquisition of Alaven is expected to be completed by early October.

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