United Drug makes double acquisition

United Drug, a provider of services to healthcare manufacturers and pharmaceutical retailers, has agreed to acquire the entire issued share capital of Synopia, which provides market access services to pharmaceutical and biotech manufacturers in the US market.

The purchase, which will be made for a total consideration of up to $12m, is being made to enable to the firm to broaden its range of services to clients in its Sales, Marketing & Medical division.

$3.2m of the consideration is payable in cash on completion, with an additional amount of up to $8.8m payable after three years on achievement of agreed profit targets.

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United Drug also announced plans to acquire the entire issued share capital of Drug Safety Alliance for a total consideration of up to $28m. The firm, which employs 94 people, provides safety and risk management services supporting pharmaceutical, biotech, medical device, animal and consumer health organisations.

The business will also form part of United's Sales, Marketing & Medical division and is being purchased to allow United to offer clients an integrated call centre and case processing pharmacovigilance service.

$21m of the consideration is payable in cash on completion with an additional amount of up to $7m payable after three years based on achievement of agreed profit targets.

Both acquisitions will be financed from United Drug's internal resources and existing debt facilities and is expected to be immediately accretive to earnings.

NR