AsianScientist (Apr. 19, 2011) – Publicly-traded SciClone Pharmaceuticals Inc. has acquired China-based specialty pharmaceutical NovaMed Pharmaceuticals Inc. through a share purchase agreement yesterday.
The deal includes approximately $24.7 million in cash for NovaMed shareholders, and shares of SciClone common stock valued at roughly $37.1 million (based upon the closing price of $4.47 on the NASDAQ stock market on April 18, 2011) , the company said in a release. There is also the potential for $43 million in payments, contingent on revenue and earnings targets over the next two years.
NovaMed Pharmaceuticals was founded in August 2005 to provide a one-stop service for global pharmaceutical companies in China. The company is reportedly backed by foreign venture capital including Fidelity Asia Ventures and Atlas Venture, and has a portfolio of 18 drug products spanning four major therapeutic areas including oncology, cardiovascular disease, central nervous system (CNS) disorders and urology/infection. With revenues of more than 25 percent annually since inception, NovaMed generated revenues totaling $31.5 million (unaudited) in 2010.
The deal is likely to help SciClone expand into China in five areas: pharmaceutical products, targeted therapeutic indications, management depth, sales force size and revenue, says Friedhelm Blobel, President and CEO of SciClone.
Among NovaMed’s most successful, exclusively promoted commercial-stage products are Depakine®, the most widely prescribed broad-spectrum anti-convulsant in China, Tritace®, an ACE inhibitor for the treatment of hypertension, and Stilnox®, a fast-acting hypnotic for the short-term treatment of insomnia (marketed as Ambien® in the US), as well as Aggrastat®, a recently-launched intervention cardiology product.
NovaMed’s pipeline also includes pharmaceutical assets in the regulatory approval process from partners such as Bio Alliance, Orexo, Meda, and EUSA. In building this broad pharmaceutical portfolio, NovaMed has established exclusive licensing and promotion agreements with a number of the world’s leading pharmaceutical companies, including Sanofi-aventis, Pfizer Inc., and Baxter International Inc.
Following the close of the acquisition, SciClone’s current operations in China and the newly acquired NovaMed will continue to operate as separate entities in the China market but under the leadership of Mark Lotter, co-founder and Chief Executive Officer of NovaMed. The NovaMed unit will continue to lead sales and marketing efforts for its current product portfolio. SciClone’s sales and marketing team will continue to sell and market ZADAXIN.
As part of the transaction, Mr. Lotter and Peter Barrett have been appointed to SciClone’s board of directors. Mr. Barrett served as a director of NovaMed and is a partner of Atlas Venture, one of NovaMed’s principal investors. Mr. Lotter has also been appointed as an officer of the Company and will oversee the China-based operations for SciClone as CEO of the China Business.
——
Source: SciClone Pharmaceuticals Inc.
Disclaimer: This article does not necessarily reflect the views of AsianScientist or its staff.
