EmergingGrowth.com looks at Merus Labs with Approval to Re-Launch Emselex®/Enablex®
Canadian based specialty pharmaceutical company, Merus Labs International Inc. (NASDAQ: MSLI) (TSX: MSL), recently announced that a wholly owned subsidiary of the company has garnered approval from Health Canada in reference to the marketing authorization (NOC) transfer of Emselex®/Enablex® from Novartis AG (NYSE: NVS). Merus is set to re-launch the product in Canada and is committed to devoting considerable sales and marketing resources to the endeavor. Additionally, Merus is in the process of finalizing an agreement with one of Europe's most cutting edge contract manufacturing organizations to produce Emselex®/Enablex® for retail and delivery in Europe and Canada. The manufacturing transfer will begin this month. During the transition period Novartis will continue to manage the manufacturing of Emselex®/Enablex®.
Merus obtained Enablex® from Novartis in 2012. The medicine is an antimuscarinic drug used for the treatment of overactive bladder. Enablex produced $23 million in sales in the company’s licensed territories last year, with the majority of revenues coming from the Netherlands, Germany, and Switzerland. With the approval for product re-launch from Health Canada, there is added potential for significant sales growth. The acquisition of Enablex and subsequent establishment of a European infrastructure was a transformative step for Merus which will now position the company as a partner of choice for future large pharmaceutical divestitures.
Elie Farah, President and CEO of Merus Labs International stated, "Merus management is pleased that the transfer of regulatory and operational components of Enablex® from Novartis are proceeding as planned, and with the help of our promotion and distribution partners, we continue to achieve strong results."
Merus acquires prescription medicines on patent at the maturity stage of the product’s life cycle. It also targets branded generics, niche market pharmaceuticals, and products with annual sales below the critical threshold for pharmaceuticals. A drug below this $200 million revenue threshold is generally a minor focus for most sizeable pharmaceutical companies and is generally drawing near the end of its product lifecycle. The under-promotion of these products provides an ideal opening for Merus to acquire them at affordable valuations and expand revenue through directed sales and marketing strategies. Merus targets acquiring drugs in a valuation range of two to three times sales and three to six times EBITDA. The company estimates that there is an aggregate global pharmaceuticals market of $80 billion consisting exclusively of products with less than $200 million in revenue. MSLI’s dynamic management team actively builds upon strong relationships with large pharmaceutical business development teams.Management is determined that Merus will continue to execute on its merger and acquisition strategy in order to step up top-line growth going forward. Look for this company to continue to grow revenues this year.
NEW: Feature your company on EmergingGrowth.com
Find out how by filling out our referral form here... http://emerginggrowth.com/recommend-a-company-to-feature-on-emerging-growth
About EmergingGrowth.com:
By offering 100% original and unmatched content by the best financial reporters, writers and bloggers in the business, EmergingGrowth.com is emerging as a leading digital financial media portal. Its services provide users, subscribers and advertisers with a variety of content and tools through a range of online, social media, mobile and other mobile outlets. Since its inception, EmergingGrowth.com has distinguished itself from other financial media companies with its sly approach to reading between the lines in order to locate that needle in the haystack. Sign up today to see what EmergingGrowth.com has to offer.
Contact:
EmergingGrowth.com
info@EmergingGrowth.com
305-323-5687
Join our Linked in Group… http://www.linkedin.com/groups/?gid=4650356&trk=hb_side_g
Like us on Facebook... http://www.facebook.com/pages/EmergingGrowthcom/474647062557938
Disclosure
All information contained herein as well as on the EmergingGrowth.com website is obtained from sources believed to be reliable but not guaranteed to be accurate or all-inclusive. All material is for informational purposes only, is only the opinion of EmergingGrowth.com and should not be construed as an offer or solicitation to buy or sell securities. EmergingGrowth.com has received compensation for preparation and distribution of this piece. Full details of which can be found here, http://emerginggrowth.com/msli Please consult an investment professional before investing in anything viewed within. When EmergingGrowth.com receives shares for compensation it intends to sell those shares. In addition, Please make sure you read and understand the Terms of Use, Privacy Policy and the Disclosure posted on the EmergingGrowth.com website.