MIAMI Noven Pharmaceuticals announced that it has completed the previously-announced acquisition of JDS Pharmaceuticals.
JDS currently markets two branded prescription psychiatry products through a targeted sales force and is advancing a significant pipeline of high-potential products in psychiatry and women’s health.
"We are confident that the acquisition of JDS will significantly increase our growth rate and sales and earnings potential over the longer term, and will greatly improve the visibility of our pipeline and financial goals," said Robert Strauss, Noven’s president, chief executive officer and chairman. "The acquisition builds upon our existing strengths and capabilities by adding the infrastructure, products and category expertise necessary to market and sell products ourselves."
The acquisition provides Noven with substantial immediate, mid-term and long-term benefits, including:
The purchase price for the acquisition was $125 million cash paid at closing plus the assumption of approximately $10 million in net non-contingent liabilities. Noven received a $25 million sales milestone payment related to its Daytrana product in August 2007.
Noven also announced that effective upon closing of the transaction, Phillip Satow, JDS’ chief executive officer and co-founder, was appointed to Noven’s Board of Directors. Satow co-founded JDS in August 2004 with his son, Michael Satow, JDS’ president and chief operating officer.
"As a member of the Noven Board of Directors, Phil will be in a position to help guide the combined company toward achievement of its expanded and ambitious goals. Few in the industry have Phil’s expertise and track record of success in the psychiatry category. We are thrilled to have him on the team as we work to build on the business and opportunities that he helped create," Strauss said.