£102.4m acquisition completed by listed animal medicines firm

Animal drugs and medicines firm Dechra has acquired the worldwide rights to the Osurnia product portfolio from Elanco Animal Health Incorporated for $135m. (£102.4m)

The acquisition will be financed from the Group’s existing cash and borrowing facilities. Completion is expected before the end of June 2020.

Dechra has its manufacturing base in Skipton, North Yorkshire, and its head office in Northwich, Cheshire.

The addition of Osurnia to the Dechra dermatology portfolio will significantly enhance its presence in this therapeutic area and complete its otitis externa service offering to veterinarians.

Osurnia is a long acting treatment for otitis externa (inflammation of the outer ear) in dogs.

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.

For the year ended 31 December 2018, the reported revenues for Osurnia were $31.2m. (£23.7m)

Stifel acted as lead adviser to Dechra on the transaction.

Ian Page, Dechra’s chief executive officer, said: “We are delighted to acquire the worldwide rights to Osurnia. We are already present in the otitis externa space with Canaural and our range of ear cleaners.

“The addition of Osurnia will allow us to offer an extended range of solutions for veterinarians to manage otitis externa and offer the best treatment for the pet taking into consideration the veterinarians clinical preference and the owners lifestyle.

“Dechra’s expertise in this arena will bring a lot of added value to otitis externa management for veterinarians.”