Galen Holdings PLC has entered into, through its subsidiary Galen (Chemicals) Limited, a conditional agreement to acquire the US sales and marketing rights to Sarafem from Eli Lilly and Company (Lilly). The agreement is conditional on US regulatory approval.

Sarafem is a US Food and Drug Administration-approved prescription treatment for pre-menstrual dysphoric disorder (PMDD), a severe form of pre-menstrual syndrome. Launched by Lilly in 2000, Sarafem generated sales of approximately US$85 million in the US in the year ended 31 December 2001.

The consideration for the Sarafem rights is US$295 million, payable in cash, which will be financed from current resources. The US$295 million consideration to be paid will be capitalised in Galen's consolidated balance sheet under intangible fixed assets.

As part of this transaction, the parties have also entered into a separate supply agreement, pursuant to which Lilly will continue to manufacture Sarafem for Galen for the next three years.

Commenting on the news, Roger Boissonneault, CEO of Galen, said; "This is an excellent addition to Galen's women's healthcare franchise in the US, where it will complement our existing product range. The increasing awareness of PMDD amongst the medical community presents us with a great opportunity to develop this recently launched product."