ProStrakan pays £230m for Archimedes
pharmafile | July 14, 2014 | News story | Sales and Marketing | Archimedes, Cancer, ProStrakan, pain, pecfent
The ProStrakan Group is to looking to expand its offerings via a payment of £230 million for Archimedes Pharma.
The deal gives the Scottish biotech access to Archimedes’ lead product, PecFent, a nasal spray used in the management of breakthrough cancer pain in patients who are already receiving maintenance opioid therapy.
It also helps grow ProStrakan’s European business in four major markets: Archimedes has a development facility in Nottingham and commercial operations in the UK, France, Germany and Spain.
“In each of these countries Archimedes has sales and marketing infrastructure which will complement ProStrakan’s current operations,” the Scottish firm insists.
ProStrakan was itself bought three years ago by Japanese speciality pharma manufacturer Kyowa Hakko Kirin for £292 million, and the Archimedes deal is of wider strategic interest to KHK.
Expanding geographic reach means ProStrakan is better positioned for the launches of several products being developed by KHK including KW-0761, a novel antibody aimed at haematology indications such as adult T-cell leukaemia/lymphoma.
Archimedes, whose HQ is in Reading in the UK, is currently owned by Novo, a private limited liability company which is in turn owned by the Novo Nordisk Foundation.
The speciality pharma company turned over £41 million last year, a 33% increase on 2012, and focuses on pain, oncology and critical care.
“The acquisition of Archimedes represents a rare opportunity to enhance the scale of our successful European operations by adding a strong portfolio of high value medicines as well as further strengthening our teams in major European markets,” says ProStraken chief executive Tom Stratford.
“Since joining KHK three years ago, ProStrakan has grown from strength to strength, culminating in the delivery of a positive profit contribution for the KHK group in 2013,” he adds. “The acquisition of Archimedes is a further step in KHK’s strategy of becoming a global specialty pharmaceutical company, as it significantly expands its presence in Europe.”
Last year ProStrakan saw turnover grow 20% compared to 2012 to £155 million, and expects oncology and oncology supportive care – areas in which Archimedes is strong – to be key growth drivers in the next few years.
The deal’s closing is subject to anti-trust approvals in Germany.
Adam Hill
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