United Drug acquires US market access business

UNITED DRUG PLC

United Drug acquires US market access business

28 August 2012: United Drug plc, a leading international provider of healthcare services announces that it has reached agreement to acquire the entire issued share capital of Synopia RX LLC ("Synopia") for a total consideration of up to $12 million.

Transaction highlights

·; Based in North Carolina, USA, Synopia provides market access services to pharmaceutical and biotech manufacturers in the US market. These services seek to accelerate the access and positioning of medicines in the payer market and include market research, payer strategy development and account management.

·; Synopia will form part of our Sales, Marketing & Medical division and will allow us to broaden the range of services we offer clients in this division.

·; $3.2 million of the consideration is payable in cash on completion with an additional amount of up to $8.8 million payable after three years on achievement of agreed profit targets. The acquisition will be financed from United Drug's internal resources and existing debt facilities and is expected to be immediately accretive to earnings.

Commenting on the announcement, Liam FitzGerald, Chief Executive of United Drug said:

"The Synopia acquisition further enhances United Drug's ability to provide a broad range of high quality, value added, services for our international clients. This business will form an important part of our growing Sales, Marketing & Medical business in the US market. Along with our other recent acquisitions, this transaction extends United Drug's position and reputation as an international provider of outsourced services to life sciences companies with an unrivalled service offering."

ENDS

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About United Drug plc

Listed on the Stock Exchanges in London and Dublin, United Drug is a leading international provider of services to healthcare manufacturers and pharmaceutical retailers, with operations in over 20 countries including: the UK, Ireland, Germany, the Netherlands, Belgium, and the USA. 

The Company operates across three divisions, Healthcare Supply Chain, Sales, Marketing & Medical, and Packaging & Specialty.

In Healthcare Supply Chain, United Drug is the largest pharmaceutical wholesaler in the island of Ireland. It is also the market leader in contract distribution outsourcing (pre-wholesaling) in Ireland and has achieved the No. 1 position in the UK through its joint venture business UniDrug Distribution Group (UDG). The Company provides specials medicines manufacturing and distribution services in the UK. Through its medical & scientific operations, United Drug provides sales & marketing and technical service solutions, including contract distribution services to a wide range of medical & scientific equipment & consumable manufacturers, with a market leading position in Ireland and an emerging presence in the UK.

In the Sales, Marketing & Medical division United Drug is a global leader in the provision of contract sales outsourcing services to pharmaceutical manufacturers with operations in major markets including Continental Europe, the UK, North America and a presence in South America. United Drug also provides related marketing services to pharmaceutical manufacturers in each of these markets.

In the Packaging & Specialty division United Drug is a leading international provider of pharmaceutical contract packaging services with facilities in the US, UK, Dutch and Belgian markets. The Company also provides speciality distribution and homecare services in the UK and Ireland.

For more information go to www.united-drug.com.