ProStrakan in £230m swoop for rival Archimedes

Drug developer ProStrakan has agreed to buy cancer pain specialist Archimedes Pharma from its Danish parent for £230 million in cash.

The Borders-based firm, owned by Japanese pharmaceutical group Kyowa Hakko Kirin (KHK), said the deal would expand its “critical mass” by growing its businesses in four of Europe’s largest markets of France, Germany, Spain and the UK.

Archimedes, which is being acquired from Denmark’s Novo Nordisk Foundation, is based in Reading and has a development facility in Nottingham. Revenues grew by a third to £41m last year.

ProStrakan saw its revenues rise by 20 per cent to £155m in 2013 and said the takeover would bring a “strong product portfolio” of high-growth brands in oncology and supportive care.

Chief executive Tom Stratford said: “The acquisition of Archimedes represents a rare opportunity to enhance the scale of our successful European operations by adding a strong portfolio of high-value medicines as well as further strengthening our teams in major European markets.

“Since joining KHK three years ago, ProStrakan has grown from strength to strength, culminating in the delivery of a positive profit contribution for the KHK group in 2013.”