Sucampo has finalized its $278 million purchase of Japanese pharmaceutical company R-Tech Ueno, which manufactures the U.S.-based company's only drug--Amitizia.
The deal, which was a share purchase of R-Tech Ueno first announced in August, gives Sucampo a manufacturing plant in Sanda City, Hyogo Prefecture, Japan, that produces the drug Amitiza used for the treatment of drug-related chronic constipation. The product also is produced for Sucampo's sales partners: Takeda Pharmaceuticals, Mylan ($MYL) and Harbin Gloria Pharmaceuticals, which sell the drug in China.
By inking the deal, Sucampo is betting its control over the plant will give it a leg up in other markets.
|Sucampo CEO Peter Greenleaf|
"By securing a larger portion of the global economics of Amitiza and control over the manufacturing and supply chain for the products, we will not only increase our revenue but also create the opportunity for greater efficiencies," Peter Greenleaf, Sucampo's CEO, said in a statement.
Greenleaf added the company expects to add between $55 million to $60 million in net income from the deal and about $5 million may be realized from cost-savings associated with combination. Sucampo also will get some products R-Tech had in its pipeline. Sucampo reported Q2 sales earlier this month of about $35 million and net income of $9.5 million.
Last year, Sucampo setled patent litigation that will allow Par Pharmaceuticals to market a generic version of the constipation drug starting in 2021 that call for half the profits to be paid to Sucampo and Takeda. Sucampo and Takeda have launched a direct-to-consumer campaign targeting chronic idiopathic constipation (CIC) in patients who are 45 and older.
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