Axcan to acquire France's Labs Enteris

Canada's Axcan Pharma has signed a definitive agreement to acquireLaboratoires Enteris, a private drugs company specializing in the distribution of gastrointestinal products in France. The value of the deal has been set at $22 million, and Axcan expects the transaction to be neutral on earnings per share this year.

Axcan will now be in a position to establish operations in France and use it as a base for the development of markets in the rest of western Europe, as well as helping it secure additional product acquisitions in Europe. The Quebec-headquartered firm's chief executive, Leon Gosselin, said the acquisition means that Axcan is the only pharmaceutical company totally dedicated to gastroenterology in both North America and Europe, "where there are many other opportunities for growth."

Founded in 1999, Enteris had revenues of approximately $7.4 million last year, with net earnings of almost $770,000. It has a sales force of 54 representatives, and its principal products include the old SmithKline Beecham antiulcerant Tagamet (cimetidine) and Arestal (loperamide) for the treatment of acute diarrhea.