Shares of Tribute Pharmaceuticals (TSXV:TRX) are rising today after the company announced it would acquire Markham-based specialty pharmaceutical company Medical Futures Inc. for $25-million.
The company says the addition of Medical Futures, which recently posted approximately $10-million in annual revenue, would be accretive.
“Based on 2014 actual results, the acquisition of the MFI business boosts our net revenues and gross margin by approximately 40 per cent in Canada,” stated CEO Rob Harris. “The MFI business provides Tribute with further product diversification, and considering the similarities of our respective corporate structures, significant cost savings will be recognized as well. Dr. Pardeep Nijhawan, founder and CEO, and the team at MFI have built a very successful and unique business.”
For Tribute, the news comes just days after the announcement that it would be acquired itself by Pozen $146-million (U.S.).
Founded in 2000, Medical Futures product portfolio includes 13 marketed products: Durela, Proferrin, Iberogast, Moviprep, Normacol, Resultz, Pegalax, Balanse, Balanse Kids, Balanse Diaflor, Purfem and Onypen. The company also holds exclusive Canadian rights to Octasa and BedBugz, both of which are pending submission to Health Canada.
At press time, shares of Tribute Pharmaceuticals were up 5.9% to $1.885.
Disclosure: Tribute Pharmaceuticals is an annual sponsor of Cantech Letter.