Shionogi, a Japan-based pharmaceutical company, announced yesterday (9/1/2008) that it would buy Atlanta-based Sciele Pharma for $1.42 billion –  57% premium to the current share price.  Shionogi’s analysis of the purchase is here.  Sciele’s business strategy relies on 505(b)(2) drug development.  Sciele in-licenses products in a wide range of therapeutic categories. Products include fenofibrate (lower doses), clonidine (sustained-release) and nitroglycerin (oral spray).

Apparently, Shionogi is buying both existing products, a pipeline and, most importantly, a seasoned sales force.

It’s nice to see 505(b)(2) products going for such multiples!