BRUSSELS--Belgian pharmaceutical company UCB SA (UCB.BT), Advent
International and Avista Capital Partners ended an acquisition
agreement that would have seen Advent and Avista buy UCB's
U.S.-based speciality generics subsidiary for $1.5 billion, the
company said in a press release.
UCB said it still plans to divest the generics unit, Kremers
Urban Pharmaceutical Inc. It said the decision to terminate the
acquisition agreement, which was signed last month, was a result of
an "unexpected conflict" between the timing of the deal and a
regulatory process launched in the U.S.
On Nov. 14, Kremers Urban said it had been informed by the U.S.
Food and Drug Administration that the agency wanted an additional
study on one of the company's products--the methylphenidate
hydrochloride extended-release (ER) tablet.
"While we are working on clarifying the situation around
methylphenidate ER we will continue the divestiture process for
Kremers Urban," said Detlef Thielgen, Chief Financial Officer of
UCB.
UCB said Tuesday's announcement doesn't impact the company's
most recent 2014 financial outlook, with the firm contining to
expect total revenue of EUR3.15 billion-EUR3.25 billion ($3.94
billion-$4.07 billion) and underlying profits of EUR590 million to
EUR620 million.
UCB's shares closed 0.6% higher at EUR64.06.
Write to Laurence Norman at laurence.norman@wsj.com
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