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GEN News Highlights : Nov 9, 2011

Salix Acquires Oceana Therapeutics for $300M

Salix gains Solesta for fecal incontinence and Deflux for vesicoureteral reflux.

Salix Pharmaceuticals is paying $300 million in cash to take over Oceana Therapeutics, a provider of gastroenterology and urology therapeutics. Headquartered in Raleigh, NC, Salix markets prescription pharmaceutical products for gastrointestinal diseases.

Salix’ strategy has been to in-license late-stage or marketed proprietary therapeutic drugs, complete any required development and regulatory submission of these products, and market them through the company’s gastroenterology specialty sales and marketing team.

“The acquisition of Oceana expands our product portfolio of innovative products, furthers the diversification of Salix’ base business, and provides immediate added revenue,” states Carolyn Logan, president and CEO, Salix. “Oceana markets two differentiated products: Solesta, a first-in-class, biocompatible tissue bulking agent for the treatment of fecal incontinence; and Deflux, the only FDA-approved alternative to major ureteral reimplantation surgery for the treatment of vesicoureteral reflux.

“For patients who have not responded to conservative therapy, Solesta, an injectable gel containing dextranomer microspheres and hyaluronic acid, may serve as a much-welcomed solution that does not involve surgery and can be performed without anesthesia,” notes Logan.

Solesta was approved in the U.S. in May and launched in September. It also is CE Mark-approved and available in Europe. Deflux has reportedly been on the U.S. market since 2001 and is available in over 40 countries outside the U.S. “Worldwide net sales of Deflux through the first nine months of 2011 were approximately $26 million,” Logan reports.

Adam Derbyshire, evp and CFO of Salix, says, “We believe peak-year sales for Solesta could exceed $500 million. We expect the transaction to be modestly accretive in 2012 and highly accretive thereafter.”