Hungary's Gedeon Richter acquires Swiss firm PregLem for $461 million to expand in women's health

Hungary’s largest drugmaker Gedeon Richter (RICHT:HB) has acquired the Swiss specialty biopharmaceutical firm PregLem for an initial cash consideration of 150 million Swiss francs and further milestone payments of up to 295 million francs. The acquisition values PregLem at up to 445 million francs ($461 million). The news sent Richter’s shares 2.6% higher to 48,210 forint in early trading yesterday.

PregLem represents a unique opportunity for Richter to strengthen its core Women's Health business as it broadens Richter's specialty pharmaceutical nature whilst at the same time complementing its existing Women's Health expertise and product range. This acquisition will develop Richter's presence in main European markets and in addition, Richter's sales force will sell PregLem's products in CEE and CIS countries, the Hungarian firm stated.

Richter also said that it would invest at least 100 million francs in PregLem in 2011-2013 to assist the commercial development of its product portfolio. The existing PregLem executive team will continue to manage PregLem, which will become an R&D center of an enlarged and growing Women's Health business for the Richter Group, with a core focus on the development of early-stage compounds. PregLem's senior management team have extensive experience in women's reproductive medicine from leading international pharmaceutical companies such as Serono (now Merck Serono), Ipsen and Warner Lambert (now Pfizer).