Azur valued at €125m after fundraising

Drug firm Azur, the investment vehicle of former Elan executive Séamus Mulligan, has been valued at €125 million after raising €35 million from investors in a private placement of shares in the business.

The money raised was denominated in US dollars ($48 million) and it brings to more than $100 million the amount of equity raised by the firm since its formation in mid-2005. The identity of the investors was not disclosed but the new shares issued represent 28 per cent of Azur's share capital.

Now building a presence in the US market, Azur specialises in the sale and distribution of strong drug products that are nearing the end of their patents and pipeline products.

"The offering provides us with the cash resources to acquire further products and pipeline assets," Mr Mulligan said of the fund-raising. Arranged through Davy Stockbrokers, the placement follows Azur's acquisition a month ago of anti-psychotic drug FazaClo in a deal worth up to $54 million.

"We are pleased to announce the successful completion of our offering and the closing of the acquisition of FazaClo. The offering leaves us with strong cash resources after funding the acquisition," Mr Mulligan said.

The business was making good progress, he said. "We have established a full commercial infrastructure in the United States with growing revenues and 90 sales representatives covering CNS [ central nervous system] and urology/women's health."

The FazaClo deal with Nasdaq-listed Avanir Pharmaceuticals is Azur's third acquisition since it first raised money through Davy in 2005.

The value of its three deals stands at more than €68 million. The acquisition of FazaClo, which is used to treat severely-ill schizophrenic patients, almost doubles the number of Azur's staff to 140 people. The product brings annual revenues of $25 million into Azur.

Prior to the deal, Azur expected revenues this year of $20 million. Azur paid $42 million to Avanir at the close of the transaction and is liable for another $10 million in contingent payments based on regulatory milestones during 2009.

Azur will also pay up to $2 million in future royalties based on 3 per cent of annual net product revenues for FazaClo in the US in excess of $17 million.

In February, Azur spent more than €20 million on the buy-out of the privately-held US firm Pharmelle, of Phoenix, Arizona. That company sells urology and female health products.

In January 2006, the firm spent $11 million on the acquisition of a product called Gastrocrom, for the treatment of a gastro-intestinal disorder known as mastocytosis, from US group UCB Pharma Inc. Azur does not engage in research and development, although another firm linked to Mr Mulligan, Circ Pharma, does

Mr Mulligan worked for 20 years with Elan until 2004, most recently as executive vice-president business and corporate development. In the latter part of his career with Elan he led a restructuring process which saw the group realise more than $2 billion on the disposal of 40 assets over 18 months.