17 Mar 2020 07:00
Tuesday, 17 March 2020
Dechra® Pharmaceuticals PLC
(Dechra, Group, Company)
Acquisition
Dechra acquires worldwide rights to the Mirataz® product portfolio
The Board of Dechra is pleased to announce that it has agreed terms to acquire the worldwide rights to the Mirataz® product portfolio from Kindred Biosciences Incorporated for a total consideration of USD43.0 million (£35.0 million)1, and a royalty on future sales. The acquisition will be financed from the Group's existing cash and borrowing facilities. Completion is expected before the end of June 2020 following the satisfaction of a number of completion deliverables.
The addition of Mirataz significantly enhances the Dechra portfolio and is fully complementary to its existing product offering to veterinarians.
Mirataz is the first and only FDA and EMA approved transdermal medication for the management of weight loss in cats, a major problem encountered by veterinarians and owners when treating other underlying medical conditions. Dechra is acquiring the worldwide marketing rights, the rights to the intellectual property, the marketing authorisations and associated regulatory documentation, supply contracts with third parties in relation to the raw material and manufacture of the finished product, and some existing inventory of the product. No other assets are being transferred to Dechra.
For the year ended 31 December 2019, the reported revenues for Mirataz were USD 4.1 million (£3.3 million) 1. The product, which was launched in July 2018 and is currently only marketed in the USA, is yet to reach maturity. It has recently been approved in the EU for bodyweight gain in cats experiencing poor appetite and weight loss resulting from chronic medical conditions, and is in registration in other territories. The acquisition is expected to be earnings enhancing for the financial year ending 30 June 2021, assuming completion before the end of June 2020.
Despite current equity market conditions and the rapidly changing developments regarding Covid-19, the Dechra business remains robust, with a strong balance sheet and strong cash flow.
Ian Page, Dechra's Chief Executive Officer commented:
"We are delighted to acquire the worldwide rights to Mirataz. The product is an incredibly good fit with Dechra's portfolio as many of the diseases that our current products treat can lead to weight loss in cats. The addition of Mirataz will allow us to offer a solution for veterinarians to manage unintended weight loss in cats and offer the best option for the pet whilst treating the underlying cause."
Enquiries: | |
Dechra Pharmaceuticals PLC | Office: +44 (0) 1606 814 730 |
Ian Page, Chief Executive Officer |
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Paul Sandland, Chief Financial Officer e-mail: corporate.enquiries@dechra.com |
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Investec Bank plc (Stockbroker and Financial Advisers) | Tel: +44 (0) 20 7597 5970 |
Chris Treneman / Daniel Adams |
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TooleyStreet Communications Ltd | Mobile: +44 (0) 7785 703 523 |
Fiona Tooley, Director e-mail: fiona@tooleystreet.com |
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Note
1. Translated at USD 1.2277: GBP 1.0000 (closing rate on 16 March 2020)
About Dechra
Dechra is global specialist veterinary pharmaceuticals and related products business. Our expertise is in the development, manufacture and sales and marketing of high quality products exclusively for veterinarians worldwide. Dechra's business is unique as the majority of its products are used to treat medical conditions for which there is no other effective solution or have a clinical or dosing advantage over competitor products.
For more information, please visit: www.dechra.com.
Stock Code: Full Listing (Pharmaceuticals): DPH
LEI: 213800J4UVB5OWG8VX82
About Mirataz
Mirataz was launched in the USA in July 2018 and is currently approved in a number of countries including Europe and UK (2019). The product is pending approval in Canada.
About Kindred Biosciences
Kindred Biosciences (Nasdaq: KIN) is a United States-based biopharmaceutical company focused on saving and improving the lives of pets. Its mission is to bring to pets the same kinds of safe and effective medicines that human family members enjoy. The company has two approved drugs, namely Mirataz® (mirtazapine transdermal ointment) and Zimeta™ (dipyrone injection).
For more information, please visit: www.kindredbio.com
Trademarks
Dechra and the Dechra "D" logo are registered trademarks of Dechra Pharmaceuticals PLC.
Forward Looking Statement
This document may contain certain forward-looking statements. The forward-looking statements reflect the knowledge and information available to the Company during the preparation and up to the publication of this document. By their very nature, these statements depend upon circumstances and relate to events that may occur in the future thereby involve a degree of uncertainty. Therefore, nothing in this document should be construed as a profit forecast by the Company.