International specialty pharma company Meda has signed a definitive agreement to acquire Acton Pharmaceuticals, a specialty respiratory pharmaceutical company, in an all cash transaction.
The proposed transaction, with a total potential acquisition value up to $200m, is subject to customary regulatory approvals and standard closing provisions.
As per terms of the agreement, Meda will acquire 100% of Acton's shares for $135m plus $10m in a contingent, near-term development milestone, while Acton will also receive certain sales-based milestones.
Acton is currently developing UD FDA-approved AEROSPAN (flunisolide), which is a HFA-propelled inhaled corticosteroid (ICS), for the treatment of asthma.
AEROSPAN incorporates a built-in spacer device, which assists in the delivery of the medicine to the lungs.
Acton president & chief operating officer Daniel Kreisler said, "Through this transaction with Meda, AEROSPAN will now be commercialized by a company with one of the leading respiratory focused sales forces in the US.
"We strongly believe this will accelerate the prescribing of this unique inhaled steroid product so we can achieve our goal of making AEROSPAN one of the leading therapies in the $2 billion U.S. inhaled steroid market."
Barclays and Bingham McCutchen are acting as financial advisor and legal advisor in relation to the transaction.
