STORY UPDATE
STOCKHOLM—August 22, 2007—Meda announced it had completed its acquisition of MedPointe and has begun the consolidation process. The final purchase price was $520 million and 17.5 million newly issued Meda shares. The company expects the acquisition to be accretive to its EPS during 2009 at the latest.
STOCKHOLM—Looking to expand its offering in the United States, Meda AB announced its plans to buy Somerset, N.J.-based MedPointe Pharmaceuticals, creating a specialty pharmaceutical company that can leverage its expertise in markets on both sides of the Atlantic. The deal will see MedPointe shareholders receive $520 million in cash and 17.5 million Meda shares.
"The formation is strong both marketing wise and in product pipeline," says Anders Lonner, Meda CEO. "The new product development from both companies can now be utilized in the company instead of being out-licensed. The product development investment done by MedPointe will represent strong growth potential both on top line and profit."
In an August 2006 report, Frost & Sullivan analysts spoke of such mergers and acquisitions between specialty pharmaceutical companies in response to increased market pressures from large pharmaceutical firms looking to get a bigger piece of the specialty pharma market. According to the report, the top ten companies in this space saw revenues almost reach $20 billion in 2005.
