In a deal aimed at beefing up its pipeline and expanding its sales force, Salix Pharmaceuticals says it will buy InKine Pharmaceutical for $190 million in stock. While questioning the price, analysts say the buyout is a good fit, with both companies developing and selling drugs for gastroenterology. Blue Bell, Pennsylvania-based InKine sells Visicol, a tablet that cleanses the bowels before a colonoscopy. Visicol had a little more than $20 million in revenue last year. A new version of Visicol is in the works that InKine believes can become a more successful treatment for constipation. Salix says the deal will expand its sales force from 68 to about 100, all targeting the same market.
"The combination of Salix and InKine provides an unparalleled opportunity for each company to capitalize on their assets in the short-term and strengthen their prospects for continued growth over the long-term," stated Carolyn J. Logan, president and CEO of Salix. "The addition of Visicol tablets to our product portfolio provides Salix entry into the growing purgative/bowel preparation market along with the potential to enter the prescription constipation market with InKine's second-generation purgative product, INKP-102."
- read this article from the News & Observer for more