Moberg Pharma to acquire 3 U.S. OTC brands from Prestige Brands

STOCKHOLM -- Moberg Pharma has signed an agreement to acquire U.S. OTC brands New Skin, Fiber Choice and PediaCare from Prestige Brands, Inc.

The purchase price is $40 million and the acquired brands will be sold through Moberg’s current OTC channel in the U.S, primarily in drugstores such as CVS, Walgreens and Rite Aid and in mass retailers such as Walmart and Target.

According to Moberg, New Skin is the main profitability contributor in the acquired portfolio and is well aligned with Moberg’s strategic focus on topical dermatology. New Skin is the #1 OTC liquid bandage brand in the U.S. It is an antiseptic that kills germs and dries rapidly to form a clear protective cover.

In addition to New Skin, the acquired portfolio also contains two mature brands, Fiber Choice and PediaCare. Fiber Choice is focusing on digestive health with a compelling lineup of product options for daily fiber supplementation. PediaCare has a strong equity amongst moms based on highly effective products for children, primarily within cough cold and analgesics segments.

“This acquisition is in line with our strategy to add critical mass to Moberg’s U.S. operations as well as a leading topical brand to our core dermatology franchise. This transaction is an excellent use of the proceeds from the bond loan issue earlier this year and the funds released in the recent divestment of non-core brands to Strides Pharma Inc.,” said Peter Wolpert, CEO of Moberg Pharma AB.