Meda and Valeant Terminate Joint Ventures

    By Dominic Chopping 
 

STOCKHOLM--Swedish specialty pharmaceuticals company Meda AB (MEDA-A.SK) said Monday it has agreed with Valeant Pharmaceuticals (VRX) to terminate the companies' joint ventures in Canada, Mexico and Australia in the second quarter of 2014.

 
   MAIN FACTS: 

-In all three countries own Meda affiliates have been established.

-The product rights to Flupirtine, Onsolis and Sublinox are returned to Meda while Valeant will continue to run the business in Canada, including the products Palafer, Contac, and Manerix. Sublinox will be licensed to Valeant in Canada.

-Meda will receive additional marketing rights to the licensed products Acnatac and Zyclara. Meda will thus be able to sell these products in countries such as Australia and South Africa.

-Meda will cease paying royalties on sales of Acnatac, Aldara and Zyclara to Valeant.

-"The agreement is in line with our strategy to focus - beside respiratory- on dermatology, as well as to strengthen our position in emerging markets," said Meda CEO Jorg-Thomas Dierks.

-At 0707 GMT shares traded 3% lower at SEK107.30.

-Write to Dominic Chopping at [e-mail]; Twitter: @WSJNordics

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