Meda Finds Marketer For Elestrin As It Concentrates On Respiratory
This article was originally published in The Pink Sheet Daily
Executive Summary
The Swedish specialty pharma is devoting more resources to its growing respiratory franchise and shifting focus away from other therapeutic areas, including women’s health.
Despite entering the women’s health arena just two years ago, Sweden’s Meda AB is shifting away from the space in an effort to focus more closely on its respiratory business.
The company announced in a short statement to the press on March 14 that it has teamed up with San Antonio-based Mission Pharmacal Co. to market Elestrin (estradiol gel), a topical estrogen therapy used as a treatment for hot flashes experienced during menopause.
Mission manufactures and commercializes prescription and over-the-counter products for women’s health, urology, pediatrics and dermatology.
“Through this partnership, we optimize sales efforts for Elestrin and at the same time increase our focus on the respiratory area,” said Meda CEO Jörg-Thomas Dierks in a statement. The company could not be reached for comment.
While none of the financial details of the transaction were disclosed, Meda said “the promotion agreement is a right step that will secure ongoing resources and continued growth for Elestrin.”
The Swedish specialty pharma acquired the product in September 2012 through a deal with Jazz Pharmaceuticals PLC (Also see "Jazz Cools On Women’s Health, Sells Unit To Meda" - Pink Sheet, 7 Sep, 2012.). Meda paid $95 million for Jazz’s portfolio of women’s health products, which brought in about $30 million in sales at the time [See Deal]. Meda does not break out the category in its financials.
“Through this partnership, we optimize sales efforts for Elestrin and at the same time increase our focus on the respiratory area.” – Meda CEO Jörg-Thomas Dierks
Included in the portfolio with Elestrin were four other products – Urelle (urinary antiseptic) for irritative voiding and symptoms related to urinary tract infections, AVC Cream (sulfanilamide) for vulvovaginitis caused by Candida albicans infections, and a pair of prenatal vitamins, Natelle and Gesticare.
Meda has spent the last year shifting its focus to concentrate more on its respiratory franchise, which is dominated by the allergy nasal spray Dymista (azelastine hydrochloride and fluticasone propionate). The drug reached sales of 449 million Swedish Krona ($70.4 million) for full-year 2013, becoming the company’s third-largest product. It was approved in the U.S. in September 2012 for treating seasonal allergic rhinitis and has obtained approval in Europe for seasonal and perennial allergic rhinitis.
“The sales uptake during the off-season period has been somewhat held back by a restricted formulary position with some of the payers. Since then we have been able to improve Dymista’s formulary position for 2014, which gives us confidence for the upcoming allergy season,” the company said about the product’s launch during its most recent earnings statement.
In addition to Dymista, the company intends to launch Aerospan (flunisolide) in the second quarter. Meda added the product to its portfolio through the acquisition of Acton Pharmaceuticals Inc. in August 2013 (Also see "Sweden’s Meda Buying U.S. Respiratory Specialist Acton For Aerospan" - Pink Sheet, 30 Aug, 2013.).
The Swedish drug maker paid $135 million plus a potential milestone payment of $10 million and royalty-based milestones to acquire the Marlborough, Mass., firm. Meda previously has said that it hopes the product will reach $300 million in sales within the next five years.