Zuplenz, launched in the US in July 2015, is an anti-emetic, which does not need to be injected or swallowed, offering patients a differentiated alternative.
Midatech expects that the acquisition of Zuplenz will leverage its commercial infrastructure in the United States, following the acquisition of DARA BioSciences, and is complementary to Midatech’s three existing marketed oncology products.
With patent protection until at least 2029, Zuplenz is targeting an estimated $4.6bn market by 2018 and is expected to add to Midatech’s growing revenues.
Midatech will pay a total up front consideration of $3.75 million in cash, with further cash payments, totalling up to $26 million, becoming payable if certain sales milestones are achieved, which are expected to be self-financed by milestone-generated cashflow. Following the Acquisition, Management expects cash reserves to be c.£16 million at the financial year-end.
The transaction is expected to be completed on or prior to Thursday, December 24, 2015, subject to customary closing conditions.
Since closure of the DARA BioSciences acquisition, significant integration has already occurred and the resultant benefits are already evident in the enlarged group with increased revenues.
Commenting on the announcement, Midatech Pharma CEO Jim Phillips said: "The acquisition of Zuplenz is a highly-complementary addition to our newly-acquired, marketed oncology portfolio. With Zuplenz expected to add to our fast-growing revenue, we believe this acquisition will help drive the Group further towards profitability."