Grünenthal Announces Largest-Ever Acquisition: $922 Million Deal for AstraZeneca's Nexium and Vimovo

VCBeat (WeChat ID: vcbeat) has learned that on October 30, 2018, local time, the international research-based pharmaceutical company Grünenthal announced its decision to acquire from AstraZeneca the European commercialization rights for Nexium (esomeprazole) and the global commercialization rights for Vimovo (naproxen/esomeprazole), excluding the United States and Japan, for $922 million (approximately €811 million).

Nexium and Vimovo are two pharmaceutical products launched by AstraZeneca for the treatment of gastric disorders and the relief of gastric pain. Gabriel Baertschi, CEO of Grünenthal, stated, “This acquisition represents the largest investment in Grünenthal’s history and is a crucial step toward realizing our vision of creating a world free from pain for patients.”

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It is well known that patients who take high doses of nonsteroidal anti-inflammatory drugs (NSAIDs) long-term are prone to gastric damage and have a higher risk of developing gastric ulcers. “We recognize that there is still a significant unmet medical need in this area. Although all clinical guidelines emphasize the importance of protecting patients’ gastrointestinal tracts, current medical practice clearly falls short in this regard. Data show that one in four patients on long-term, high-dose NSAID therapy faces the risk of developing gastric ulcers,” said Gabriel Baertschi. “Combining Grünenthal’s extensive research expertise in pain relief with the established products Nexium and Vimovo represents a perfect strategic fit.”

Under the acquisition agreement, Grünenthal will obtain exclusive rights to market Nexium to patients with approved indications in 33 European countries, a move expected to generate substantial revenue for the company. In 2017, total sales of Nexium in the relevant markets amounted to approximately $248 million (around €220 million). Additionally, Grünenthal will secure global commercialization rights for Vimovo, excluding the United States and Japan. Currently, Vimovo is available in more than 30 countries and regions. Under the agreement, the drug will remain under patent protection in most European markets until 2025. In 2017, Vimovo achieved sales of $79 million (approximately €70 million) in the relevant markets.

Grünenthal stated that it will significantly strengthen its operations across multiple pain-related therapeutic areas in the future. Meanwhile, the company expects this acquisition to double the performance of its EBITDA-generating business segments.

However, the final completion of this transaction is still subject to approval by relevant antitrust authorities, with an expected completion date in December 2018.

Nexium (esomeprazole) is a proton pump inhibitor (PPI) primarily used to treat gastroesophageal reflux, ulcers, and Zollinger-Ellison syndrome. Its indications also include the prevention and treatment of gastric ulcers induced by nonsteroidal anti-inflammatory drugs (NSAIDs), and it effectively suppresses gastric acid production.

Vimovo (naproxen/esomeprazole) delayed-release tablets are a fixed-dose combination of naproxen. Containing the same active protective ingredient as Nexium, it is indicated for osteoarthritis, rheumatoid arthritis, ankylosing spondylitis, and gastric ulcers associated with nonsteroidal anti-inflammatory drug (NSAID) use. Compared with naproxen alone, this fixed-dose combination reduces the prevalence of gastric ulcers in these patient populations by 70%, thereby providing adequate gastric protection and pain relief.

Grünenthal, founded in 1946 and headquartered in the Aachen region of Germany, is a family-owned international pharmaceutical company with over seventy years of history. It has branches in 25 countries and regions across Europe, the Americas, and other parts of the world. The company is one of only five research-oriented pharmaceutical companies globally, holding a unique position and achieving top-tier standards in the field of pain management. Its goal is to become the most patient-centric company in the pain sector.