RE:AcquisitionAs a result, MSL made today's Globe & Mail Stocks to Watch list. GLTA
Toronto-based Merus Labs International Inc. (MSL-T; MSLI-Q) said one of its subsidiaries has signed a definitive agreement worth $29.5-million (U.S.) to acquire the rights from Novartis Pharma AG to manufacture, market, and sell two established specialty pharmaceutical products in certain European and other markets.
In 2014, the products had sales of about $10-million (U.S.) in these territories. Merus said it will fund the acquisition with available cash.
The two products are: Salagen, which is indicated for xerostomia following radiation therapy, in addition to Sjogren's syndrome. Estraderm MX is a transdermal delivery format of estradiol used for symptomatic treatment of menopause.
“This transaction will expand our specialty pharmaceutical product line and leverage our strong European platform. It also demonstrates our ability to execute deals and realize value from our accelerated business development efforts,” said CEO Barry Fishman.