Jazz Pharma agrees to sell women's health business
NEW YORK (AP) — The Irish drugmaker Jazz Pharmaceuticals PLC is selling its women's health business to specialty pharmaceutical company Meda for $95 million in cash so that it can concentrate on its core products.
Jazz, which combined with Azur Pharma in January and relocated to Ireland, said Thursday that the sale includes the estradiol gel Elestrin, the menopause symptom treatment Gastrocrom, prenatal vitamin Natelle One, AVC Cream, prenatal multivitamin Gesticare DHA and urinary antiseptic Urelle. Sales of the products totaled $30.4 million last year.
Meda said that it views Elestrin as the most important product in the deal as it is one of the leading brands in the estrogen replacement therapy market and will add to its existing sales.
Jazz said that as part of the sale Meda will offer jobs to about 60 Jazz employees that directly support these products.
Meda says that it will finance the transaction with existing credit facilities.
The sale does not need the approval of Jazz shareholders but is subject to antitrust clearance.
The deal is expected to close in the fourth quarter. Jazz expects a one-time gain on the sale during that quarter.
U.S. shares of Jazz closed at $44.93 on Wednesday. They are down 17.6 percent from their 52-week high of $54.50 in late April.