Grünenthal acquires testosterone treatment Nebido from Bayer

Family-owned drugmaker Grünenthal today announced an agreement with fellow Germany-based Bayer (BAYN: DE) to acquire Nebido, a long-acting depot preparation of testosterone undecanoate and a well-known brand for the treatment of male hypogonadism, and its associated brands for up to 500 million euros ($505.5 million).

The product is approved and successfully commercialized in over 80 countries. Patent protection exists until March 2024 in the EU and until May 2027 in the US. The brand is expected to add about 100 million euros to Grünenthal’s earnings before interest, tax, depreciation and amortization (EBITDA) in 2023. The acquisition is subject to customary closing conditions, including approval by the relevant competition authorities. Closing is expected to occur by the end of 2022.

“One in six men over 50 live with the symptoms of testosterone deficiency. Too few of these patients receive appropriate treatment. We are committed to facilitating access to treatment for even more patients in need,” says Gabriel Baertschi, Grünenthal’s chief executive, adding: “Grünenthal’s strong track record of acquiring established brands has significantly improved our profitability, allowing us to invest in research and development and create the next generation of pain therapies.”