A French-Canadian pharmaceutical group is to expand its European operations via the acquisition of the French company Laboratoire du Lacteol du Docteur Boucard, its second European investment.
Axcan Pharma paid US$12.6 million (€14.3m) for Lacteol, a company specialising in the manufacture and distribution of lyophilised powder and capsules containing a specific Lactobacillus proprietary strain for the treatment of diarrhoea, sold under the Lacteol brand name.
The deal, which includes the acquisition of the company, the Lacteol brand, manufacturing facilities and the land, will allow Axcan to grow its French sales and marketing operations.
Some $7.6 million of the purchase price will be paid in cash, with the remaining $5 million paid either in cash or common shares, at the discretion of the company. The sale is likely to be completed by the end of April.
"When we acquired Enteris, a French pharmaceutical laboratory, our goal was to establish profitable operations in France. This acquisition, which underlines the commitment of management to pursue accretive transactions, will not only allow us to do that but will also add to our current product line," said Leon F. Gosselin, Axcan's president and CEO.
"Following this acquisition, we will be able to create a single co-ordinated sales force to market Lacteol, the Enteris products and any other products that may be acquired or developed by Axcan. We will also benefit from this transaction by completing our management team and strengthening our distribution channels in Western Europe," he concluded.
Axcan said it planned to conduct clinical studies to develop Lacteol for the treatment of other gastrointestinal indications, since the field of probiotics holds promise in several gastrointestinal therapeutic areas, such as the treatment of irritable bowel syndrome.
Lacteol recorded revenue in excess of $10 million in 2001, and was marginally profitable. In France, its main product, Lacteol Fort, is indicated for the treatment of diarrhoea in both children and adults. Lacteol Fort is marketed using a contract sales organisation with 70 medical representatives. Axcan said it would merge Lacteol with Enteris, its previously acquired subsidiary.
Axcan will also gain access to a large number of potential distributors for its Helicide brand, a treatment for peptic ulcers, and other upcoming products, by way of the export network of Lacteol, which is sold in more than 30 countries, through distribution agreements with local companies.