Vet products group in £35m US swoop for cat treatment portfolio
Dechra Pharmaceuticals, the Northwich-based vet products group, has agreed to acquire the worldwide rights to the Mirataz product portfolio from Kindred Biosciences Incorporated for a total consideration of £35m, and a royalty on future sales.
The acquisition will be financed from the group’s existing cash and borrowing facilities.
Completion is expected before the end of June, following the satisfaction of a number of completion deliverables.
The addition of Mirataz significantly enhances the Dechra portfolio and is fully complementary to its existing product offering to veterinarians.
Mirataz is the first and only FDA- and EMA-approved transdermal medication for the management of weight loss in cats, a major problem encountered by veterinarians and owners when treating other underlying medical conditions.
Dechra is acquiring the worldwide marketing rights, the rights to the intellectual property, the marketing authorisations and associated regulatory documentation, supply contracts with third parties in relation to the raw material and manufacture of the finished product, and some existing inventory of the product.
No other assets are being transferred to Dechra.
For the year ended December 31, 2019, the reported revenues for Mirataz were £3.3m.
The product, which was launched in July 2018 and is currently only marketed in the USA, is yet to reach maturity.
It has recently been approved in the EU for bodyweight gain in cats experiencing poor appetite and weight loss resulting from chronic medical conditions, and is in registration in other territories.
The acquisition is expected to be earnings enhancing for the financial year ending June 30, 2021, assuming completion before the end of June 2020.
Despite current equity market conditions and the rapidly-changing developments regarding Covid-19, the Dechra business remains robust, with a strong balance sheet and strong cash flow.
Chief executive Ian Page said: “We are delighted to acquire the worldwide rights to Mirataz.
“The product is an incredibly good fit with Dechra’s portfolio as many of the diseases that our current products treat can lead to weight loss in cats.
“The addition of Mirataz will allow us to offer a solution for veterinarians to manage unintended weight loss in cats and offer the best option for the pet whilst treating the underlying cause.”
