Sinclair Pharma to acquire commercialization rights to Flammazine and Flammacerium from Solvay

Tue. October 13, 2009; Posted: 02:43 PM

Oct 13, 2009 (Datamonitor Financial Deals Tracker via COMTEX) -- SVYSY | Quote | Chart | News | PowerRating -- Sinclair Pharma plc, a UK-based pharmaceutical company, is planning to acquire two dermatology products, Flammazine and Flammacerium, from Solvay Pharmaceuticals SA for GBP16.27 million. The acquisition will be financed by a fundraising of up to GBP25 million. Based in Belgium, Solvay Pharmaceuticals is the pharmaceuticals business of Solvay S.A., a chemical and pharmaceutical company.

Flammazine and Flammacerium are topical creams used for the prevention and treatment of infections in burn wounds.

Sinclair will acquire the sales and worldwide commercial rights for Flammazine and Flammacerium from Solvay Pharmaceuticals. The acquisition will be funded via a combination of debt and equity raised from new and existing investors. Upon completion Sinclair will own worldwide rights, excluding the UK and Italy.

Sinclair has announced an equity fundraising of up to GBP25 million through a firm placing of up to GBP12.5 million and an open offer of GBP12.5 million. The fundraising, which is being done at GBP0.32 per share, has been fully underwritten by Singer Capital Markets Limited.

Sinclair is also in the advanced stages of negotiating a new debt facility of up to GBP9 million which it intends to use to finance the proposed transaction. In the event Sinclair successfully agrees the terms of the new debt facility, the fundraising will be scaled back to GBP18 million, comprising the placing of GBP9 million firm and GBP9 million under the open offer.

In addition to satisfying the consideration of the proposed transaction Sinclair intends to use the balance of the proceeds of the fundraising to meet related acquisition expenses and for working capital purposes for the group.

Deal Value (US$ Million) 25.78
Deal Type                Partnership
Sub-Category             Commercialization,Sales,Licensing Agreement
Deal Status              Announced: 2009-10-12

Deal Participants

Partner 1 (Company) Sinclair Pharma plc
Partner 2 (Company) Solvay Pharmaceuticals SA
Partner 3 (Company) Solvay S.A.

Deal Rationale

These products are complementary to Sinclair's existing dermatology portfolio. They also provide Sinclair with the opportunity to broaden its own European commercial presence and seek additional value from other potential applications and line extensions.

For full details for SVYSY click here.

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