Dechra Pharmaceuticals buys California-based Med-Pharmex for $260m

Dechra Pharmaceuticals said on Tuesday that it has bought California-based veterinary pharmaceutical manufacturer Med-Pharmex for $260m (£221.5m).

It said Med-Pharmex is the acquisition referred to in the fundraising announcement it made in July as the "potential acquisition".

Dechra said the majority of Med-Pharmex's revenue is derived from white label products which are sold through distributors. The company intends to bring some of these products in-house and sell through its own sales and marketing channels, which will provide a material synergy benefit.

In the longer term, synergies will also be realised from the integration and improved utilisation of the manufacturing facilities, Dechra said.

For the 12 months to the end of December 2021, Med-Pharmex generated audited revenues of $43m and an adjusted EBITDA of $15.3m.

Chief executive Ian Page said: "I am delighted that we have completed the acquisition of Med-Pharmex, a company that I have been in dialogue with for a number of years.

"The US market is highly consolidated, therefore this is a unique opportunity to add several new products to our portfolio, enter the US FAP (food producing animal products) market and improve the manufacturing footprint for our North American business."