Recordati buys unit of German's Merckle

Italian drugmaker Recordati, which last year lost out to US firm IVAX in a bid to acquire the Polish pharmaceutical company Polfa Kutno (Marketletters passim), has agreed to acquire Merckle GmbH of Germany's branded pharmaceutical business.

The purchase price of 65.0 million euros ($84.9 million) includes certain future payments over the next three years contingent upon certain favorable future developments in relation to some products, says Recordati. The closing of the transaction, which is expected to take place by April this year, is subject to certain conditions, including clearance of the deal by the relevant anti-trust authorities and the completion of a Merckle reorganization to split off the business activities which are not part of the acquisition.

Merckle's branded pharmaceutical business comprises a portfolio of prescription and over-the-counter medicines, mainly in the field of gastroenterology and rheumatology, and has a field force of around 130 people. As part of the deal, Recordati will not buy any production facilities.