Specialty pharmaceutical company,
Jazz Pharmaceuticals plc
) recently signed a definitive agreement with Meda Pharmaceuticals
Inc., the US subsidiary of Meda AB, for the sale of its women's
As per the terms of the deal, Meda will take over a portfolio of
six out of eight drugs from Jazz Pharma's women's health business
for $95 million in cash. Meda will also offer employment to
approximately 60 employees of Jazz Pharma to join its work
The drugs to be divested by Jazz include Elestrin, indicated for
the treatment of hot flushes in menopausal women.
Other drugs for sale are 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.
Subject to the necessary conditions, the transaction is expected
to close in the fourth quarter of 2012. the company expects to book
a non-recurring profit in the fourth quarter of 2012, following the
sale of the women's health business.
The company will provide additional details regarding the
financial impact of the deal once the sale goes through. The sale
of the women's health business should allow Jazz Pharma to focus on
its core areas like narcolepsy, oncology, pain and psychiatry.
We note that Jazz Pharma was in the news recently with a new
patent related to its oral solution Xyrem, which is indicated for
the treatment of cataplexy and daytime sleepiness in patients
diagnosed with narcolepsy.
The new patent is the eighth patent of Xyrem, listed in the Food
and Drug Administration's (FDA) Orange Book. It will expire in
Currently, we have a Neutral recommendation on Jazz
Pharmaceuticals. However the stock carries a Zacks #2 Rank
(short-term Buy rating).
JAZZ PHARMACEUT (JAZZ): Free Stock Analysis
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