17th Mar 2020 10:21
(Alliance News) - Dechra Pharmaceuticals PLC said Tuesday it has acquired the worldwide rights to the Mirataz product portfolio from Kindred Biosciences Inc.
Dechra acquired the portfolio for a total of USD43.0 million, and a royalty on future sales. Dechra said the deal will be funded from its existing cash and borrowing facilities.
The deal is expected to complete before the end of June 2020 and is expected to be earnings enhancing for the financial year ending June 30, 2021.
"Mirataz is the first and only FDA and EMA approved transdermal medication for the management of weight loss in cats, a major problem encountered by veterinarians and owners when treating other underlying medical conditions," Dechra said.
Dechra is acquiring the worldwide marketing rights, the rights to the intellectual property, the marketing authorisations and associated regulatory documentation, supply contracts with third parties in relation to the raw material and manufacture of the finished product, and some existing inventory of the product.
In 2019, Mirataz recorded revenue of USD4.1 million. The product, Dechra noted, is currently only marketed in the US.
It has recently been approved in the EU for bodyweight gain in cats experiencing poor appetite and weight loss resulting from chronic medical conditions, and is in registration in other territories, Dechra said.
Chief Executive Ian Page said: "We are delighted to acquire the worldwide rights to Mirataz. The product is an incredibly good fit with Dechra's portfolio as many of the diseases that our current products treat can lead to weight loss in cats. The addition of Mirataz will allow us to offer a solution for veterinarians to manage unintended weight loss in cats and offer the best option for the pet whilst treating the underlying cause."
Turning to the deadly Covid-19 outbreak, Dechra said it business remains robust, with a strong balance sheet and cash flow.
Shares in Dechra Pharmaceuticals were 4.5% lower in London on Tuesday morning at 2,070.00 pence each.
By Paul McGowan; [email protected]
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