New Acquisition For Medeva In The USA

Medeva of the UK has signed a conditional agreement to acquire Inhalon Pharmaceuticals of the USA, which manufactures inhaled anesthetics. Medeva is acquiring the company for $54 million.

Medeva will pay for the company in three tranches. The initial amount to be paid will be $35 million and is payable on completion. The deal will be financed from Medeva's existing cash resources. $10 million will be paid in the second quarter of 1995, and the remaining $9 million one year later. The final payments will depend on Inhalon satisfying certain commercial production and capacity targets for each product.

Anesthetics is another niche market for Medeva, which has built up its product portfolio through focussing on niche markets. The world market for anesthetics is valued at some $500 million, 40% accounted for in the USA, 15% in the UK, Germany, France and Spain.