BRADLEY PHARMACEUTICALS ACQUIRES FIVE BRANDS FROM TSUMURA MEDICAL
This article was originally published in The Tan Sheet
BRADLEY PHARMACEUTICALS ACQUIRES FIVE BRANDS FROM TSUMURA MEDICAL for $ 1.3 mil. The deal, consummated March 30, includes two consumer wart patch products PediaPatch and PlantarPatch, two ethically promoted wart removal patches, Trans-Ver-Sal and Trans- Plantar, and a synthetic saliva product, Glandosane. Sales of the new products are "in excess of $ 1 mil.," the company said. The $ 1.3 mil. price tag for trademarks, patents and "know- how" includes $ 850,000 in cash paid at the closing of the deal and another $ 450,000 in the form of a five-year note at 7% interest. In addition, the agreement includes a 5.5% royalty payment for all net sales up to a maximum payment of $ 600,000 a year for the next five years and approximately $ 170,000 to cover inventory. Tsumura also acquired 150,000 warrants to purchase Bradley Pharmaceuticals Common "A" shares at $ 4.50 per share for five years. Tsumura Medical is based in Shakopee, Minn. Trans-Ver-Sal and Trans-Plantar were launched as prescription products in 1989. However, the active ingredient of the two patches, salicylic acid, was placed in Category I in FDA's final monograph for wart removers, published in August 1990. The two products were launched with the new OTC brandnames, PediaPatch and PlantarPatch, in 1991. Bradley's Kenwood Labs division will market the products. Promotional plans include coupons in Sunday newspapers "very, very soon" and print advertising touting the products' hydrogel controlled-release delivery system, a company spokesperson said. The Tsumura product line represents Bradley's seventh acquisition since the company was founded in 1985. The acquisitions include a line of products marketed to Hispanic physicians, a number of older ethical and prescription products from Key Pharmaceuticals, and two ethical nonprescription products -- an OTC cold and allergy brand from Hoechst-Roussel called Duadacin and Neoloid, a castor oil laxative brand from Lederle. Bradley went public in 1990. In 1992, the company reported sales of $ 1.7 mil. and a net loss of $ 657,000.
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