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STOCKHOLM — Moberg Pharma AB has acquired the Balmex brand in the United States from Chattem Inc.
Moberg Pharma AB has acquired the Balmex brand in the United States from Chattem Inc.
Annual net sales of the brand are estimated to be over $4 million. The purchase price is $3.9 million, and it is financed by available cash resources.
The Balmex line includes products used for diaper rash. An adult line for soothing skin irritations was launched in 2013.
"Adding Balmex to Moberg’s U.S. portfolio is a great fit, within our core area of topical dermatology," says Moberg chief executive officer Peter Wolpert. "We are continuously evaluating deal opportunities to further leverage our U.S. sales and marketing infrastructure."
Wolpert adds that the deal will boost the company’s sales and earnings, helping it to meet its long term financial goal of delivering profitable growth and an EBITDA (earnings before interest, taxes, depreciation and amortization) margin of 25% starting in 2016.
"We see excellent opportunities to build on the brand equity of Balmex and utilize our Innovation Engine to further strengthen the future value proposition of the brand to consumers and retailers," says Moberg Pharma North America general manager Jeff Vernimb.
