Graceway Pharmaceuticals, LLC, a portfolio company of GTCR Golder Rauner, LLC, has completed its previously announced acquisition of the pharmaceutical business of 3M in the United States, Puerto Rico, Canada and Latin America. The acquisition included, among other assets, all of 3M's branded pharmaceutical products.
As part of the transaction, Graceway and 3M have entered into manufacturing agreements for the products as well as a technology access and development agreement. In connection with the acquisition, Graceway has retained the majority of 3M's experienced field sales force in North and Latin America. Total consideration paid by Graceway at closing was approximately $875 million. Estimated 2006 net revenues for the products in North and Latin America total approximately $350 million.
The products acquired include, among others, Aldara (imiquimod) Cream 5 per cent indicated for the treatment of external genital warts, actinic keratosis, and superficial basal cell carcinoma in certain circumstances and MaxAir (pirbuterol acetate inhalation aerosol) Autohaler indicated for the prevention and reversal of asthmatic attacks. In addition to the products, Graceway also acquired related new drug applications, trademarks, copyrights, patents, licenses to certain patents associated with potential new formulations of the products, and other related intellectual property.
"We are very pleased to have completed this transaction in such a timely manner, especially in light of the US Food and Drug Administration's recent grant of six-month paediatric exclusivity for Aldara," said Jefferson J. Gregory, chairman and CEO of Graceway. This award by the FDA extends by six months the exclusivities associated with all patents listed with Aldara in FDA's publication, Approved Drug Products with Therapeutic Equivalence Evaluations, also known as the Orange Book.
Gregory continued, "This acquisition demonstrates our ability to execute our strategic goal of increasing value by delivering innovative products in attractive therapeutic specialties. We will now pursue opportunities to strengthen and enhance these established products and extend our offering of branded prescription products in these areas."
Graceway also announced that Chester Valley Pharmaceuticals, based in Malvern, Pennsylvania, has been fully merged into Graceway. Bob Moccia, former CEO of Chester Valley, will serve as President and COO of Graceway. "Our merger into Graceway and the acquisition from 3M adds significant depth to our existing portfolio of dermatology products and creates a presence for us in several new complementary therapeutic specialties," stated Moccia. The newly combined sales force consists of more than 190 experienced professionals in sales, managed care and medical education.
The organization's headquarters and corporate functions, which include finance, business development, regulatory, information technologies, human resources, legal, and technical operations, are based in Bristol, Tennessee. Sales, marketing and product development initiatives are based in Malvern, Pennsylvania.
Graceway Pharmaceuticals, LLC, headquartered in Bristol, Tennessee, is a pharmaceutical company focused on acquiring, in-licensing, and developing branded prescription pharmaceutical products. Current prescription products marketed by Graceway include Aldara, Atopiclair, Benziq, Maxair, Metrogel-Vaginal, Minitran, and Tambocor.