SciClone acquires NovaMed Pharmaceuticals
Gives access to broad pharmaceutical product portfolio and large sales force in China
SciClone Pharmaceuticals of the US has acquired NovaMed Pharmaceuticals, a China-based specialist pharmaceutical company in a deal valued at up to US$105m.
Foster City, California-based SciClone said the acquisition brings broad sales and marketing, as well as regulatory and extensive business capabilities and pharmaceutical assets.
Under terms of the deal, NovaMed shareholders will receive up-front payments of approximately $25m in cash, 8,298,110 shares of SciClone common stock valued at approximately $37m and the right to additional cash of up to $43m upon the successful achievement of revenue and earnings targets for this year and 2012.
NovaMed and SciClone's combined revenue this year will be between $140m–$145m.
SciClone already sells its hepatitis B and hepatitis C drug, Zadaxin in China.
NovaMed, a privately held pharmaceutical company backed by foreign venture capital, has a portfolio of 18 drug products in four major therapeutic areas, including oncology, cardiovascular disease, central nervous system (CNS) disorders and urology/infection.
To support this portfolio, NovaMed has a sales organisation of more than 450 people. NovaMed had unaudited sales of $31.5m in 2010.
‘NovaMed represents an excellent strategic acquisition as it allows SciClone, in a single transaction, to expand dramatically our presence in China in five important areas: pharmaceutical products, targeted therapeutic indications, management depth, sales force size and revenue,’ said Friedhelm Blobel, president and chief executive of SciClone.
NovaMed's main pharmaceutical products include anti-convulsant Depakine, hypertension treatment Tritace, and Stilnox, a hypnotic for the short-term treatment of insomnia (marketed as Ambien in the US), as well as Aggrastat, a recently launched intervention cardiology product.
‘By combining the important financial resources and strong sales and marketing capabilities offered by SciClone with NovaMed's proven experience in in-licensing and marketing novel therapeutics for the China market, we are in a strong position to participate in and benefit from the rapidly expanding pharmaceutical market in China,’ said Mark Lotter, co-founder and chief executive of NovaMed.
Following the completion of the deal, SciClone's current operations in China and the newly acquired NovaMed will continue to operate as separate entities in China, but under Lotter’s leadership.
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.
Lotter and Peter Barrett, a NovaMed director and a partner of NovaMed backer Atlas Ventures, will join SciClone’s board.
