Fresenius to acquire business from Nabi Pharma

Germany's Fresenius Medical Care AG has signed a definitive agreement to acquire the worldwide phosphate binder business (PhosLo) from USA-based Nabi Biopharmaceuticals. PhosLo is a calcium acetate phosphate binder for oral application in end-stage renal disease patients that has total product line revenues in the USA of around $40.0 million.

The total consideration paid in the transaction will be $65.0 million cash at closing, royalties on a new potential product formulation plus milestone payments. The milestones consist of $10.0 million expected to be paid in 2007 and $10.0 million over the next two to three years, contingent upon the achievement of certain performance targets.

Too much phosphate in the blood can result in a number of adverse events, including bone disease, thyroid problems and vascular calcification. The risk of such damage in end-stage renal disease patients can be lowered by regularly taking phosphate binders, says Fresenius noting that, currently, the phosphate binder market exceeds $500.0 million worldwide.