7th Jan 2014 10:10
LONDON (Alliance News) - Sinclair IS Pharma PLC Tuesday said it has agreed to buy the the global rights to Perfectha dermal fillers via the acquisition of Obvieline Laboratories SA.
Sinclair said it also has entered into agreements to acquire distribution rights for Perfectha, principally from Pharmavital SA, Obvieline's parent company.
The deals are worth up to EUR32.2 million in total in cash, with an initial payment of EUR10.0 million.
The Perfecthma beauty range consists of five fillers which aim to fill skin wrinkles.
The total consideration is structured into a number of payments with most being delivered over the two years following completion.
These include a balancing payment based on the finalised 2013 revenues of Obvieline; a payment on completion for the distribution rights in certain geographies, principally Brazil and Russia, of double the 2013 sales of Perfectha by Pharmavital; and a payment of EUR6.5 million on obtaining EU approval for the Perfectha lidocaine anaesthetic range.
An additional one-off payment of EUR2.0 million will be made once sales of Perfectha exceed EUR17.0 million in any 12 month period from January 6, 2014, the firm said.
Sinclair said global rights to Perfectha are of major strategic importance, given its focus on aesthetic dermatology.
The Perfectha product range delivered revenues of EUR8.4 million for the year ended December 31, 2013, of which 90% came from emerging markets, Sinclair said.
The acquisition is being funded through a new debt facility from the Hayfin Capital Management Group. Hayfin are providing a new five-year term facility of GBP35.0 million and a GBP3.0 million revolving credit facility.
Sinclair shares were trading at 30.75 pence Tuesday morning, up 2.25 pence or 7.9%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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