Salix Pharma to buy Oceana for $300 million; posts 3rd-qtr profit

With the aim of improving its innovate products franchise, US drugmaker Salix Pharmaceuticals (Nasdaq: SLXP) has entered into an agreement to acquire privately-held Oceana Therapeutics, a global provider of gastroenterology and urology therapeutics, for $300 million in cash. The transaction is subject to customary conditions to closing, including US anti-trust approval, and is expected to close in December 2011.

“The acquisition of Oceana expands our product portfolio of innovative products, furthers the diversification of Salix’s base business and provides immediate added revenue,” stated Carolyn Logan, president and chief executive of Salix. She added: “Oceana markets two differentiated products - Solesta, a first-in-class, biocompatible tissue bulking agent for the treatment of fecal incontinence; and Deflux, the only [Food and Drug Administration]-approved alternative to major ureteral reimplantation surgery for the treatment of vesicoureteral reflux.”

Ms Logan continued: “Solesta is a highly synergistic addition to our product portfolio. We believe our specialty sales force, calling on gastroenterologists and colorectal surgeons, should be able to maximize the commercial potential of this asset. Solesta was approved by the FDA through the premarket approval process as a Class III Medical Device in May 2011 and launched in September 2011. Solesta also is CE Mark-approved and marketed in Europe…Deflux also is approved and marketed outside the United States in over 40 countries. Worldwide net sales of Deflux through the first nine months of 2011 were approximately $26 million.”