Sweden's Meda buys Valeant's European business to gain entry to Russia pharma mart

Swedish specialty drugmaker Meda AB has signed an agreement to acquire USA-based Valeant's pharmaceutical business in western and eastern Europe, for a consideration of some $392.0 million in cash.

The purchase will benefit Meda in many different respects, both short- and long-term. It will give it entry into Russia and, in eastern Europe, it means a potential for significant market synergies with products in Meda's existing pipeline. In western Europe, the Swedish firm's position will be strengthened, especially in the UK. The majority of the acquired products are also within its key therapy areas; neurology and dermatology, which is in line with its focused approach and offers good synergies.

The total sales of the acquired business are 1.0 billion Swedish kronor ($181.5 million), of which eastern Europe accounts for 200.0 million kronor. Major markets are Germany, Italy, Spain, Russia and the UK, both in terms of sales and employees. Total headcount is 380, with 230 staff in marketing and sales, primarily visiting specialists within dermatology and neurology. The regional headquarters are based in Basingstoke, UK.