STADA to buy Spirig generics business for $109 million; posts 9-month loss due to Serbian difficulties

German drugmaker STADA Arzneimittel (SAZ: GR) has reached agreement with Switzerland’s Spirig Pharma to purchase Spirig's generics business including the respective sales structures by STADA for a total of around 97 million Swiss francs ($109.2 million).

The accord also includes the right to continue marketing the acquired products under the Spirig umbrella brand. The portfolio includes 56 prescription (Rx) and 15 non-prescription (OTC) and discretionary prescription (OTX) products. STADA estimates the current annual sales of the acquired products to be about 42 million francs and EBIDTA, adjusted to the business structure being spun off, to be some 9.5 million francs. The acquisition does not include any production facilities.

The transaction is carried out under the usual execution terms as well as on condition that Spirig had spun off the business to be acquired into a separate independent unit. The purchase price will be paid at the time of the execution, which is expected in first-quarter 2012. STADA will use cash on hand and existing free credit lines to finance the acquisition.