Sanofi has sold the French rights to four of its treatments to Merus Labs International for €22.5 million (about $24.8 million).

The four treatments covered by the deal include Surgestone® (progestatif) and Provames® (estradiol), both indicated for various gynecological disorders, as well as the macrocytic anemia treatment Speciafoldine® (folic acid), and the tapeworm treatment Tredemine® (niclosamide anhydrous).

Merus said the deal will continue its strategies of broadening its product line through acquisitions of marketed prescription drugs, as well as expanding its presence in France. Upon closing of the deal, Merus will market 12 prescription drug products. “We have acquired nine established products over the last 10 months and continue to leverage our scalable commercial platform in Europe” Merus CEO Barry Fishman said in a statement.

The four treatments are expected to generate net revenue of approximately €6.3 million ($6.9 million) during Merus’ 2016 fiscal year, which ends September 30. Surgestone accounts for about half of those overall sales, and Speciafoldine about 33%, Merus stated in an investor presentation.

At current exchange rates, the products are expected to generate approximately $5.6 million in annual EBITDA, reflecting an EBITDA margin of almost 60%, according to Merus. The company said it expected to fund one-third of its purchase with debt, and the remaining two-thirds with equity. The deal is expected to close during the second week of March. To date, all closing conditions have been satisfied except for payment of the purchase price.

Merus raised its guidance for adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for the current fiscal year. The company said it expected adjusted EBITDA for FY2016 to range between $47 million and $50 million, compared with its earlier projection of “in the $30 million range,” made in December following the release of FY2015 results. Merus has committed to growing its EBITDA to more than $120 million by FY2019.

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