Faulding sells Soltec to Connetics for $32M

Australia's FH Faulding says it has signed an agreement to divestits drug delivery unit, Soltec Res earch, to the USA-based Connetics Corp. The latter will acquire Soltec's issued capital for A$32 million ($15.9 million) within the next month, though current development projects being undertaken by the unit to enhance Faulding's injectable technologies and related product pipeline will be retained by the Adelaide-based firm.

Ed Tweddell, Faulding's chief executive, said that the firm's integration of its pharmaceutical assets and consolidation of management "has facilitated a continuing strategic review" of all the group's businesses (Marketletters passim). An early result of this "has been a determination to focus our innovation and value-adding activities on more defined therapeutic areas, particularly oncology and pain management," he added, noting that Faulding has proven expertise and strong market presence in these areas.

Soltec's primary expertise is in dermatology drug delivery systems, therefore it "lies outside of these areas of strategic intent," Dr Tweddell said, hence the decision to divest it. He added that the sale to Connetics allows Faulding "to crystallize the value we have created in Soltec."