MEDEVA MAKES FIRST EURO ACQUISITION

UK pharmaceutical company Medeva has made its first acquisition in Europe. Medeva has entered an agreement acquiring the Institut de Recherche Corbiere of Paris, France, for a sum of 93.75 million French francs ($16.9 million). Of this total 40 million francs is payable immediately in cash. A further 53.75 million francs is payable after one year, 43.75 million francs of which may be satisfied by the issue of new Medeva shares. These must be held for at least one year after the date of completion.

IRC distributes ethical products acquired from major pharmaceutical companies. It has 67 employees and turnover for 1991 was 50 million francs. The company made a loss of 4.7 million francs in 1991 due to expenditure on building its sales force, although it is expected to be profitable and earnings-enhancing by 1993, according to Medeva.

IRC provides Medeva with an established presence in France and a foundation for launching other products in the future. Medeva says it is a key step in establishing a sales infrastructure in Europe. It has already filed for a registration in France for its Fluvirin influenza vaccine which will be marketed and sold by IRC's sales force. Medeva plans to inject more products into IRC and enlarge its existing sales force of 53 to around 75, within one year.