Axcan reimburses loan to Schwarz Pharma

As a result of the closing of its C$51.0 million ($33.2 million)bought-deal equity offering announced at the end of May, Canada's Axcan says it has reimbursed, in full, its outstanding debt to Schwarz Pharma (Marketletter June 11). The payment, totaling $39.4 million, includes $38.5 million in principal and $856,720 in accrued interest on the loan.

Axcan incurred this debt in November 1999, as a result of the purchase of Schwarz' 50% interest in Axcan URSO LLC, a joint venture created in January 1997, for the purpose of marketing the gastrointestinal drug URSO 250 (ursodiol) in the USA.

Axcan made the acquisition in order to control the development and commercialization of the product in the USA, where it achieved sales of approximately $16.5 million in fiscal year 2000.