Merus Labs International Inc.("Merus" or the "Company") [TSX: MSL, NASDAQ: MSLI] is pleased to announce that one of its wholly owned subsidiaries has signed a definitive agreement to acquire the rights to manufacture, market, and sell two established specialty pharmaceutical products in certain European and other markets.
The products are being divested by Novartis Pharma AG, a leading global pharmaceutical company for a purchase price of US$29.5 million. In 2014, the products had sales of approximately US$10 million in the applicable territories. Merus will fund the acquisition with available cash.
Salagen ® (pilocarpine hydrochloride) is indicated for xerostomia following radiation therapy, in addition to Sjogren's syndrome. Estraderm MX® is a transdermal delivery format of estradiol used for symptomatic treatment of menopause.
"This transaction will expand our specialty pharmaceutical product line and leverage our strong European platform. It also demonstrates our ability to execute deals and realize value from our accelerated business development efforts" commented Barry Fishman, Chief Executive Officer.