Richter Group said today that it will buy Switzerland-based women's health company PregLem in a deal worth up to $461 million. PregLem's most advanced product candidate is Esmya for the treatment of uterine fibroids; Phase III trials of the drug were completed in June. If approved, Esmya would be the first of a new type of treatment for the disease. PregLem hopes to market the drug in Europe by 2012 and file for U.S. approval the same year. Esmya is already approved as an emergency contraceptive.
Richer purchased a 100 percent equity stake in PregLem, making it its largest expansion to date. PregLem gets $156 million up front and further milestone payments of up to $307 million. Richter will also be investing $104 million in Preglem. The developer says the buyout with increase the company's stake in specialty pharma as well as grow its presence in the European markets. Additionally, Richter believes the PregLem acquisition will complement its existing women's health division. PregLem's management team will stay on to oversee the company, which will become an R&D center of Richter's growing women's health business.
- check out the PregLem release
- read the Reuters story