Drug deal

Solvay has signed a memorandum of understanding with the shareholders of Fournier Pharma, with the aim of acquiring 100% of the company for 1.3 billion Euros in cash.

The confirmation of the deal, however, is subject to a detailed review of the company which will be carried out in the next four weeks.

Fournier Pharma has developed fenofibrate products that are good at lowering triglycerides and a form of cholesterol called very-low-density lipoprotein (VLDL). The nanoparticle technology used in the development of the drug allows it to dissolve quickly and completely in the gastrointestinal tract.

Fournier is working with Abbott Laboratories to co-promote the product in the US under the brand name TriCor, a deal which Solvay expects to continue after the acquisition.

Pending satisfactory outcome of due diligence and approval from the relevant authorities, the acquisition could be completed by this summer. If approved, the deal would expand Solvay Pharmaceuticals’ business by more than one third in terms of sales. The combined companies would be supported by a substantial R&D budget of about 370 million Euros.