UPDATE 1-Sweden's Meda says buys U.S. MedPointe
(Adds further detail, CEO quote from statement)
STOCKHOLM, July 20 (Reuters) - Swedish drug company Meda (MEDAa.ST) said on Friday it signed a cash-and-stock deal to buy pharmaceutical firm MedPointe Inc., a specialist in allergy and pain treatments, from a group of U.S. investors.
Meda said it would pay $520 million in cash and 17.5 million newly issued Meda shares for the New Jersey-based company, whose biggest products are non-steroidal nasal spray Astelin and the allergic conjunctivitis treatment Optivar.
Privately owned MedPointe's sales were $252 million in 2006 with an EBITDA (earnings before interest, taxes, depreciation and amortisation) margin of 12 percent, reflecting costs related to marketing and clinical development, Meda said.
The Swedish company said the MedPointe buy will add to its earnings per share by 2009 at the latest.
The transaction will mean that MedPointe owners Carlyle and Cypress groups and some additional U.S. investors hold about 6 percent of Meda's shares.
Meda Chief Executive Anders Lonner said the merger made sense from both the marketing and product pipeline standpoints.
"The new product development from both companies can now be utilised in the company instead of being out-licensed," Lonner said. "The product development investment done by MedPointe will represent strong growth potential both on top line and profit."
MedPointe has a staff of 710.
((Stockholm Newsroom, editing by Quentin Bryar; tel: +46-8-700 1017, e-mail: stockholm.newsroom@reuters.com)) Keywords: MEDA MEDPOINTE/
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