THE Scottish pharmaceutical firm ProStrakan yesterday unveiled a major acquisition deal which will see it snap up Reading-based drug developer Archimedes Pharma in a cash swoop worth almost a quarter of a billion pounds.
The Galashiels-based firm, a subsidiary of Japanese biotech group Kyowa Hakko Kirin, said the £230m agreement would generate “several strategic benefits” as KHK seeks to become a global leader in specialty markets.
Fast-growing Archimedes which has operations in the UK, France, Germany and Spain, works on pain, oncology and critical care treatments and recorded annual revenues of £41m last year, following a 33% increase in business.
ProStrakan, which was bought by KHK in a £292m deal three years ago, saw revenues climb 20% to £155m in the same period.
It expects Archimedes’ “strong product portfolio of high-growth brands” in oncology and oncology care to be a key growth driver over the next few years.
“The acquisition of Archimedes represents a rare opportunity to enhance the scale of our successful European operations by adding a strong portfolio of high-value medicines, as well as further strengthening our teams in major European markets,” said ProStrakan chief executive Dr Tom Stratford.
“Since joining KHK three years ago, ProStrakan has grown from strength to strength, culminating in the delivery of a positive profit contribution for the KHK group in 2013.
“The acquisition of Archimedes is a further step in KHK’s strategy of becoming a global specialty pharmaceutical company, as it significantly expands its presence in Europe.”
The deal remains subject to successful approval under German competition rules.