Jazz Pharmaceuticals plc
) recently completed the sale of its women's health business to
Meda Pharmaceuticals Inc., the US subsidiary of Meda AB.
Per the terms of the agreement that was first announced in
September, Meda acquired a portfolio of six out of eight drugs
from Jazz Pharma's women's health business for $95 million in
cash. As per the agreement, Meda also paid an additional amount
for the purchase of certain inventory from Jazz Pharma.
At the time of first announcing the deal in September, Meda
had said that it would offer employment to approximately 60
employees of Jazz Pharma to join its work force. However,
no mention was made in the latest press release regarding
The drugs divested by Jazz Pharma include Elestrin (treatment
of hot flushes in menopausal women), Gastrocrom, Natelle One
(prenatal vitamin), AVC Cream, Gesticare DHA (prenatal
multi-vitamin) and Urelle (urinary antiseptic). Jazz Pharma
reported net sales of $30.4 million in 2011 from the above
mentioned portfolio of six drugs.
The company is also expected to book a non-recurring profit in
the fourth quarter this year, as the sale of the women's health
business is now completed.
The sale of the women's health business should allow Jazz
Pharma to focus on its core areas like narcolepsy, oncology, pain
and psychiatry. However, these markets are highly competitive
with the presence of big companies like
Roche Holdings AG
Bristol-Myers Squibb Company
Currently, we have a Neutral recommendation on Jazz
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