Galen Holdings PLC
09 December 2002
GALEN HOLDINGS PLC ACQUIRES SARAFEM(R) RIGHTS FROM LILLY FOR US$295 MILLION
Craigavon, Northern Ireland, UK / Rockaway, New Jersey, US, 9 December 2002.
Galen Holdings PLC (LSE: GAL, Nasdaq: GALN) ('Galen'), the international
pharmaceutical company, announces today that it has entered into, through its
subsidiary Galen (Chemicals) Limited, a conditional agreement to acquire the US
sales and marketing rights to Sarafem(R) from Eli Lilly and Company ('Lilly').
The agreement is conditional on US regulatory approval.
Sarafem(R) is a US Food and Drug Administration-approved prescription treatment
for pre-menstrual dysphoric disorder ('PMDD'), a severe form of pre-menstrual
syndrome. Launched by Lilly in 2000, Sarafem(R) generated sales of
approximately US$85 million in the US in the year ended 31 December 2001.
The consideration for the Sarafem(R) rights is US$295 million, payable in cash,
which will be financed from current resources. The US$295 million consideration
to be paid will be capitalised in Galen's consolidated balance sheet under
intangible fixed assets.
As part of this transaction, the parties have also entered into a separate
supply agreement, pursuant to which Lilly will continue to manufacture Sarafem
(R) for Galen for the next 3 years.
Commenting on the news, Roger Boissonneault, CEO of Galen, said; 'This is an
excellent addition to Galen's women's healthcare franchise in the US, where it
will complement our existing product range. The increasing awareness of PMDD
amongst the medical community presents us with a great opportunity to develop
this recently launched product.'
Galen is an international pharmaceutical company based in Craigavon, Northern
Ireland and Rockaway, New Jersey, US. The Galen group of companies develops,
acquires and manufactures branded prescription pharmaceutical products, which
are promoted by the group's sales and marketing divisions in the UK, Ireland and
- ENDS -
Galen Holdings PLC
David Kelly, Sr. Vice President, Finance and Planning.
+44 (0) 283 833 4974
Sophie Pender-Cudlip / Francetta Carr
+ 44 (0) 207 831 3113
For further information on Galen, please visit www.galenplc.com
Forward looking statements in this report, including, without limitation,
statements relating to Galen's plans, strategies, objectives, expectations,
intentions and adequacy of resources, are made pursuant to the safe harbor
provisions of the U.S. Private Securities Litigation Reform Act of 1995. These
forward looking statements involve known and unknown risks, uncertainties and
other factors that may cause the actual results, performance or achievements of
Galen to be materially different from any future results, performance or
achievements expressed or implied by such forward looking statements. These
factors include, among others, the following: Galen's ability to manage its
growth, government regulation affecting the development, manufacture, marketing
and sale of pharmaceutical products, customer acceptance of new products,
competitive factors in the industries in which Galen operates, the loss of key
senior management or scientific staff, exchange rate fluctuations, general
economic and business conditions, and other factors described in filings of
Galen with the SEC. Galen undertakes no obligation to publicly update or revise
any forward looking statement, whether as a result of new information, future
events or otherwise.
This information is provided by RNS
The company news service from the London Stock Exchange