NW medicines firm wins foothold in US

Mar 29 2008 by Alistair Houghton, Liverpool Daily Post

CHESTER pharmaceutical company Maelor has bought a Swiss business in a deal worth up to £14.25m.

Maelor has taken over drug supplier Speciality European Pharma International (SEPI) and says the acquisition will give it a foothold in the huge US pharmaceutical market.

The group, which supplies medicines to hospitals, is also set to be renamed IS Pharma (International Speciality Pharmaceuticals) to reflect its expanded business.

Maelor is buying SEPI for an initial cash payout of £9.25m, with a further fee of up to £5m dependent on sales targets.

Meanwhile, the group said its trading for the year to March 31 had been in line with expectations.

Maelor chief executive Tim Wright said: “Post-acquisition we have a very focused international business, selling direct to hospitals in the UK, but also with a strong distributor network across European markets, a first step in North America and a presence in developing markets.

“This acquisition represents the next step in our strategy of creating a profitable specialist hospital medicines business, growing organically and by targeted acquisition.

“We are confident that we will be able to rapidly integrate and grow the business so as to maximise earnings and shareholder value.”

SEPI’s key product is Haemopressin, used to stop oesophageal bleeding and in the treatment of liver disease. Maelor is already familiar with the drug as it distributed it in the UK.

The drug has also been licensed to a company in the US and so yesterday’s deal means Maelor gains a “low-risk” foothold in the North American market.

Mr Wright said: “We’ve seen other suppliers try to move into North America and they’ve fallen flat on their faces.

“For a company of the stage and age we are at, we see this as an intelligent acquisition.

“We are aiming to build a global brand but also we have the security of a company already based in the US dealing with that market.”

As SEPI outsourced most of its work, Maelor will not be taking on any staff or premises as a result of the deal. Maelor only employs 20 people itself as it outsources much of its work.

Analyst Matt Butlin, of London’s Noble Group, gave the deal a warm welcome. He said: “We expect a step-up in earnings as acquired product Haemopressin gains approval in new geographical locations over the next 18 months.”

alistairhoughton