Bayer (BAYRY - Free Report) recently inked a deal to acquire all shares of Germany-based Steigerwald Arzneimittelwerk GmbH. Steigerwald Arzneimittelwerk is a private pharmaceutical company which specializes in pharmacy-only herbal medicines.
The transaction is expected to close early July this year on the fulfilment of certain conditions, including antitrust clearance. The companies kept the financial details of the transaction undisclosed. Bayer also agreed to take over all employees (approx. 180 people) of Steigerwald Arzneimittelwerk.
With the acquisition, Bayer will add Iberogast and Laif in its product portfolio. While Iberogast is approved for the treatment of functional gastrointestinal disorders, Laif is approved for the treatment of mild-to-moderate depression. In 2012, Steigerwald Arzneimittelwerk recorded sales of €61.3 million.
Bayer has been pretty active on the acquisition front in the last few months. The company was in the news recently with the announcement of its intention to acquire Conceptus Inc. , which develops and commercializes innovative device-based solutions in permanent birth control. Earlier this month, Bayer commenced a cash tender offer to acquire all shares of Conceptus for $31.00 per share (approx. $ 1.1 billion).
The Conceptus acquisition will add the Essure permanent (non-surgical) birth control system to Bayer’s product portfolio. We note that Conceptus’ Essure procedure was approved in 2002 in the US and is well accepted in the market. Successful completion of the acquisition would ensure the presence of short-term, long-term and permanent contraceptive choices from Bayer’s portfolio for women.
Bayer presently carries a Zacks Rank #3 (Hold). Other stocks such as Alexion Pharmaceuticals Inc. (ALXN - Free Report) and Alkermes (ALKS - Free Report) currently look more attractive. Both stocks carry a Zacks Rank #2 (Buy).