Acton Pharmaceuticals a specialty respiratory pharmaceutical company has entered into a definitive agreement under which the company will be acquired by Meda in an all cash transaction. The proposed transaction is subject to customary regulatory approvals and standard closing provisions.
Under the terms of the agreement, Meda will acquire 100% of Acton’s shares for $135 million plus $10 million in a contingent, near-term development milestone. Acton will also receive certain sales-based milestones, which may bring the total potential acquisition value up to $200 million.
Acton is focused on the development of respiratory medicine and recently received U.S. Food and Drug Administration approval for AEROSPAN™ (flunisolide), for the treatment of asthma. AEROSPAN is a HFA-propelled inhaled corticosteroid (ICS) and is the only approved HFA inhaler in its class to incorporate a built-in spacer device, which assists in the delivery of the medicine to the lungs. The value of the U.S. single-entity ICS market is approaching $2 billion with more than 12 million prescriptions written each year.
AEROSPAN Inhalation Aerosol is an orally inhaled corticosteroid indicated for the maintenance treatment of asthma as prophylactic therapy in adult and pediatric patients 6 years of age and older.
Acton was founded in March 2008 by John Simon, Chief Executive Officer and Daniel Kreisler, President & Chief Operating Officer of Acton.
“Through this transaction with Meda, AEROSPAN will now be commercialized by a company with one of the leading respiratory focused sales forces in the U.S.,” commented Daniel Kreisler. “We strongly believe this will accelerate the prescribing of this unique inhaled steroid product so we can achieve our goal of making AEROSPAN one of the leading therapies in the $2 billion U.S. inhaled steroid market.”
John Simon continued, “We are excited to enter into this agreement with Meda, a leading global pharmaceutical company. Meda’s experience marketing respiratory products combined with their significant track record of success makes them extremely well-suited to launch AEROSPAN to respiratory and pediatric physicians in the U.S.”
Scott Carter, a partner at Sequoia Capital and a member of Acton’s Board of Directors said, “We are very fortunate to partner with Acton Pharmaceuticals. Sequoia Capital recognizes and applauds the excellence of this highly experienced management team who has driven the company to tremendous success.”
Barclays is acting as financial advisor and Bingham McCutchen LLP is acting as legal advisor to Acton in the transaction.
