Japan's Nitto Denko is to buy Elan Transdermal Technologies in what is regarded as the first stage of a strategy to roll-out Nitto's drug delivery technologies around the world.
Ireland's Elan has embarked on a series of divestments of late in a desperate bid to raise cash in order to pay off debt and obligations totalling $1.3 billion by the end of this year. Most recently, the firm sold its primary care business to King Pharmaceuticals of the USA for $750 million, realising around $315 million from the deal, and gave up its stake in Ligand Pharmaceuticals in return for £68 million. The terms of the deal with Nitto Denko have not been revealed.
ETT is based in the USA and sells proprietary and generic controlled-release transdermal products for a wide range of therapies, while Nitto Denko is the market leader in transdermal delivery in its home market. The Japanese company said that the rationale behind the acquisition was use ETT as a platform to extend the reach of its in-house technologies, particularly in the USA, by tapping into ETT's manufacturing base, regulatory expertise and patent portfolio.