Elan Corp continues to add key drugs to its portfolio through selective tuck-in acquisitions. In mid-May, the company announced plans to acquire Segix Italia, a privately-held Italian pharmaceutical company with products in the anti-infective, cardiovascular, and central nervous systems areas. These are niches in which Elan already specializes.
Though financial terms of the acquisition were not disclosed, Segix Italia is a far smaller company than Elan, with about $25 million in total sales, compared to Elan's expected year 2000 revenues of about $1.2 billion.
According to A.G. Edwards analyst Kenneth Nover, the deal gives Elan further access to the European market, in particular, the Italian market, where Elan currently lacks a presence. The $9.5 billion Italian pharmaceutical market is the fifth largest in the world.
Elan is believed to be already planning to launch several of its products into the Italian market by the end of 2001. Likely candidates include Corlopam, Elan's intravenous anti-hypertensive, and Neurobloc, its treatment for cervical dystonia. The acquisition is expected to contribute to the long term growth of Elan's portfolio.