Child’s Play: Sciele To Boost Pediatric Presence With Alliant Acquisition
This article was originally published in The Pink Sheet Daily
Executive Summary
Deal worth $122 million gives Sciele products including Orapred and oral suspension of Allegra.
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Sciele Pharma will buy privately held Alliant Pharmaceuticals for $122 million, including $12 million in debt, providing Sciele with a portfolio of pediatric products. The acquisition was announced April 24. By acquiring Alliant, Sciele gains control of products such as the asthma medication Orapred/Orapred ODT (prednisolone orally disintegrating tablets), Methylin (methylphenidate) oral solution and chewable tablets for attention deficit/hyperactivity disorder, Rondec/Rondec DM (chlorpheneramine/phenylephrine/dextromethorphan) for allergies, coughs and colds, the head lice/scabies shampoo Lindane and an oral suspension formulation of Sanofi-Aventis' antihistamine Allegra (fexofenadine), Alliant entered a two-year copromotion deal for Allegra in December (1 (Also see "Alliant To Detail Allegra Oral Suspension" - Pink Sheet, 11 Dec, 2006.)). Boards of both companies have approved the acquisition, which is expected to close this quarter. Alliant is expected to generate revenues of $50 to $60 million in 2007. Atlanta-based Sciele's marketed portfolio is centered on cardiovascular/metabolic and women's health products. The antibiotic Furadantin (nitrofurantoin oral suspension), for treatment of urinary tract infection, is the firm's only product that it also markets to pediatric prescribers. Sciele will also gain Alpharetta, Ga.-based Alliant's 85-member sales force, which will form Alliant's new pediatric sales team. Even prior to the announcement, Sciele had been seeking to extend its presence in the pediatric market. On April 3, the firm announced it had begun enrolling patients in a Phase III trial for glycopyrrolate for the treatment of chronic, moderate-to-severe drooling in pediatric patients. Glycopyrrolate has orphan drug status, and Sciele plans on submitting an NDA in mid-2008 with launch following in mid-2009. In the non-pediatric realm, the firm also announced April 18 that it had begun enrolling patients in a Phase III trial of a combination of pravastatin (Bristo- Myers Squibb's Pravachol and generics) and fenofibrate to treat mixed dyslipidemia. Sciele markets fenofibrate under the brand name Triglide . Sciele told "The Pink Sheet" DAILY that Alliant is also pursuing a new formulation of Rondec, with a Phase III trial expected to begin in the second half of the year. In an April 25 note to investors, JP Morgan analyst Adam Greene called the acquisition a "relatively inexpensive deal that makes sense." "While this deal is not the panacea for potential lost Sular sales, it is a good start and provides a nice revenue stream. It also provides Sciele with a pediatric focus that could be further leveraged if its glycopyrrolate gets approved." The patent on Sciele's hypertension treatment Sular (nisoldipine) will expire on June 8, 2008, according to FDA's "Orange Book." - Jonathan M. Block ([email protected]) |