Lured by the booming Chinese pharmaceuticals market, Foster City, CA-based SciClone Pharmaceuticals ($SCLN) has struck a deal to buy Shanghai-based NovaMed Pharmaceuticals for $24.7 million in cash and $37.1 million in stock. SciClone has also pledged up to $43 million in revenue milestones as it absorbs a developer with a range of marketed drugs as well as a development arm focused on registration work.
NovaMed touts a portfolio of 18 drug products spanning four therapeutic areas: Oncology, cardiovascular disease, central nervous system disorders and urology/infection. And SciClone says that it will step up to the plate in China with additional programs up for regulatory approval in China. Their combined revenue for 2011 is expected to hit between $140 million and $140 million this year.
"Whereas SciClone had already established itself in China with our successful Zadaxin franchise, we have now evolved into a formidable presence in this fast growing market with a combined sales force of more than 680 individuals, nearly 20 commercial stage products spanning several key indications, and an expanded Shanghai based management team with significant pharmaceutical industry experience," says SciClone CEO Friedhelm Blobel, Ph.D.
- here's the SciClone release