YorkPharma acquires Flammazine from Solvay
Fraser has acted as financial advisor to York Pharma PLC in relation to its acquisition of dermatological and wound care products Flammazine and Flammacerium from Solvay S.A. The acquisition of the two products by York Pharma will provide an opportunity to extend the brands’ reach into new geographic markets through the company’s expanding specialist dermatology sales and marketing infrastructure.
Milton Keynes – July 4, 2008. York Pharma PLC acquires dermatological and wound care products from Solvay S.A. Under the terms of the agreements with Solvay, York Pharma has acquired Flammazine and Flammacerium, both brands for the prevention and treatment of infections in burn wounds and topical wound infections.
The transaction consists of two agreements – the first agreement entails the acquisition by York Pharma of all rights, permits, continuing sales and intellectual property to both brands on a worldwide basis; the second, separate agreement, entails the five year supply to York Pharma of finished products by Solvay.
Both products contain silver sulfadiazine and are currently approved in 21 countries under the trade names Flammazine, Bruluzine, Silver sulfadiazine and Zilversulfadiazine for the prevention and treatment of infections in burn wounds and topical wound infections. Silver sulfadiazine is also available in a combination with cerium nitrate under the major trade name of Flammacerium.
Currently, sales of Flammazine and Flammacerium are concentrated in the major European markets of France, Germany, Belgium and Spain. The acquisition of the two products by York Pharma will provide an opportunity to grow their sales in these key territories and to extend the brands’ reach into new geographic markets through the company’s expanding specialist dermatology sales and marketing infrastructure. The North American market is a key strategic area for York Pharma’s future expansion, where the company plans to exploit the orphan drug designation for Flammacerium.
The financing of the acquisition included an institutional placing to existing York Shareholders of $7.18 million and a $44.02 million loan in senior secured debt and convertible notes.
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