Sinclair IS Pharma divests Mysoline to Lab SERB for 11 million

UK specialty drugmaker Sinclair IS Pharma (AIM: SPH.L) says it has disposed of the epilepsy drug Mysoline (primidone), for a total cash consideration of £11.1 million ($17.8 million) to Laboratoires SERB SAS, the current distributor of the product in France. The disposal is in-line with the board’s strategy to dispose of non-strategic assets in order to focus on the company’s core portfolio of dermatology, wound care and hospital supportive care products. Completion will take place within seven days.

Mysoline is a prescription-only medicine indicated for certain types of epilepsy, essential tremors and seizures. The product was acquired through the merger with IS Pharma and is non-core for Sinclair IS. Mysoline generated revenues of £3.0 million and an EBITDA of £1.7 million (excluding allocation of central overheads) in the financial year to March 31, 2011.

Chris Spooner, chief executive, commented: “The board is pleased to have secured a good price for a non-core asset. While product and therapeutic area focus is core to Sinclair IS’ growth strategy, this type of transaction is only made possible by the sharp, recent underlying improvement in overall group EBITDA. The funds generated by the sale provide balance sheet flexibility and hence an exciting opportunity for further investment in our core business.”