Irish drug firm looks set for €200m sale

Irish-domiciled speciality drug development company Innocoll looks set to be sold in a near €200m deal.

The company — which has a suite of collagen-based medicines and bases in the US, Athlone, and Germany — has reached agreement to be acquired by international healthcare and life sciences investment fund Gurnet Point in a $209m (€196m) deal, which could complete as early as this week.

As part of the deal, Gurnet Point plans to provide a $10m term loan to Innocoll, which re-domiciled from Germany to Ireland last year, which will give it additional resources for the continued development of its Xaracoll treatment. The consideration includes certain potential payments related to the approval of Xaracoll, which is aimed at treating post-operative pain. US regulators last year rejected its application to market citing the need for more clinical trials.

Innocoll had expected to receive FDA approval for Xaracoll this year. Speaking yesterday, Gurnet Point’s managing partner Christopher Viehbacher said: “Gurnet Point intends to work with Innocoll’s team to help bring Xaracoll to market by infusing substantial additional capital for its continued development and regulatory approval.”

Gurnet Point said the transaction will build on its strategy of investing in life science, medical technology and healthcare service companies. Innocoll is exploring a sale of the company as a means of bringing Xaracoll to market, as well as keeping the company independent and raising the required $100m to fund operations through to 2019 without having to rely on raising debt or equity.