York Pharma gets rights to Solvay products; arranges $48M financing for the deal

In what is its third acquisition in little more than a year, UK-headquartered York Pharma has entered into an agreement with Belgium's Solvay to gain sales and global commercialization rights to two of the latter's dermatological/wound care products, the silver sulfadiazine-based brands Flammazine and Flammacerium. Last year, the London Alternative Investment Market-listed firm took over fellow UK companies Derms Development and Rosanto Pharmaceutical (Marketletters passim).

Under the terms of this latest accord, York will pay Solvay 28.5 million euros ($44.9 million) for the products, indication for the treatment of infections in burn and topical wounds, which are sold in 21 countries and generated combined annual sales of around L8.5 million ($16.9 million). The two-part deal firstly gives York all rights, permits, continuing sales and intellectual property to both brands worldwide and, secondly, it entails the five-year supply to the Hitchin-based company of finished product by Solvay.

The UK firm aims to grow the turnover of the brands through active promotion and geographical expansion, in a global topical anti-infectives market which it values at around $445.0 million annually. At present, Flammazine and Flammacerium revenues are concentrated on Belgium, France, German and Spain. The latter has an orphan drug designation, which York aims to exploit.