Galen said yesterday that it had completed the acquisition of Sarafem from Eli Lilly amid market speculation that it would be a likely bidder for Pfizer's women's healthcare products, which have just come on the market.
Analysts said the Northern Irish drugmaker would be interested in the three products Pfizer plans to sell, all of which fit Galen's acquisition criteria.
The world's largest drugmaker said on Wednesday that it would be selling two oral contraceptives, Estrostep and Loestrin, and the hormone replacement therapy drug, FemHRT. Between them, the drugs had sales of $210 million (€195.7 million) last year.
"It is very difficult to imagine Galen not being interested in these products," said Mr Jack Gorman, analyst with Davy Stockbrokers.
He said any further acquisitions by Galen would have the advantage of broadening its portfolio at a time of market concern over both Sarafem, a version of Prozac used to treat pre-menstrual syndrome, and its oral contraceptive, Ovcon. Both drugs face the threat of generic competition.
Aside from offering a potential acquisition target, Merrion analyst Mr Peter Frawley said the news of the Pfizer sales was positive for Galen as it potentially reduced the competition within Galen's focused market.
However, he warned that like Sarafem, all three products were at risk from generic competition with both Estrostep and FemHRT patents being challenged by Barr Laboratories and a generic version of Loestrin already in the market. A Galen spokesman declined to comment specifically on the Pfizer sale but said the company would look at "any opportunities presented to us".
Galen, which specialises in women's healthcare, dermatology and urology, has repeatedly said that it remains on the lookout for acquisition opportunities in the US in its three core areas.
Meanwhile, Galen said yesterday that the 30-day waiting period before it could complete the Sarafem purchase had elapsed.
The company has paid €292.5 million to acquire the US sale and marketing rights to the drug from Eli Lilly.
Galen shares remained weak yesterday, losing 4 per cent in London to 347.50p while they were nearly 5 per cent weaker in Dublin at €5.20.
