Azur acquires drug in €30.8m deal

AZUR Pharma, the Dublin company set up by former Elan executive Seamus Mulligan, has acquire the schizophrenic treatment FazaClo.

This is the third acquisition by Azur since it was set up by Mr Mulligan in June 2005.

Buying FazaClo, a treatment for those with severe schizophrenia who fail to respond adequately to standard drugs, will cost Azur an initial $42 million (€30.8m) and up to $10m in 2009.

The Irish company will also have to pay FazaClo current owner, Nasdaq-listed Avanir, annuals royalty payments based on the drug’s US sales.

Financing the takeover should be no trouble for Azur, which raised $50m from private investors in June 2005.

“We are pleased to add FazaClo, an important therapeutic for the management of severely ill schizophrenic patients, to our portfolio.

“FazaClo is our third acquisition having previously purchased Gastrocrom and Pharmelle in January 2006 and February 2007, respectively.

“We have taken an important step in reaching critical mass in the US,” Mr Mulligan said yesterday.

FazaClo generated revenues of $16.5m and sales this year are running strongly ahead. Azur said the it expects the drug to have revenues of $25m this year.

“The FazaClo team have been very successful with this product and we welcome them to Azur.

“We intend continuing to build on their focus and dedication so prescribers will obtain the support they require to ensure this treatment option continues to be available for appropriate patients,” Mr Mulligan added.

The company now has 140 people working in the US, including 90 sales reps and is also on the lookout for new products.

Mr Mulligan was with Elan for 20 years in a variety of roles.