Kyowa Hakko to acquire Archimedes for £230 million

Through its Scotland-based subsidiary ProStrakan Group, Japanese drugmaker Kyowa Hakko Kirin (TYO: 4151) has entered into an agreement with Novo A/S, a private company fully-owned by Denmark’s Novo Nordisk Foundation, to purchase the entire share capital of UK drug developer Archimedes Pharma for a consideration of £230 million ($394 million) in cash.

Archimedes is a fast growing specialty pharmaceutical company providing novel and advanced treatments within the therapeutic areas of pain, oncology and critical care, says ProStrakan. Its largest product is PecFent, a fentanyl nasal spray used in the management of breakthrough cancer pain in patients who are already receiving maintenance opioid therapy for chronic cancer pain. The product was developed using Archimedes’ proprietary drug delivery technology platform, which is protected by several patents.

Brings in treatments for pain, oncology and critical care

Archimedes also has a diversified product portfolio of both promoted and non-promoted pharmaceutical products marketed to health care professionals across Europe. It has a strong European footprint with commercial operations in the UK, France, Germany and Spain. In 2013, Archimedes recorded revenues of £41 million, growing 33% from the previous year.

ProStrakan’s acquisition of Archimedes furthers Kyowa Hakko’s strategic vision of becoming a global specialty pharmaceutical company. The acquisition of Archimedes also delivers several strategic benefits to ProStrakan. The transaction significantly expands ProStrakan’s critical mass in Europe by growing its businesses in four of the largest European markets: UK, France, Germany and Spain. In each of these countries Archimedes has sales and marketing infrastructure which will complement ProStrakan’s current operations.