Axcan To Acquire Eurand

Axcan Holdings will acquire all outstanding shares of Eurand for approximately $583 million in cash. The combined company will be led by Axcan’s president and chief executive officer, Frank Verwiel, M.D. The transaction is expected to close in 2Q11.

Angelo C. Malahias, chairman of Eurand’s Special Committee, said, “After an extended auction process, and in conjunction with its independent financial and legal advisors, the board of directors has concluded that this agreement is in the best interests of our shareholders and other stakeholders.”

Gearoid Faherty, chairman and chief executive officer of Eurand, said, “The last several years have seen Eurand evolve from being a license and development, drug formulation company into a fully integrated, specialty pharmaceutical business. I am very proud of the achievements of the Eurand team and this transaction shows the attractiveness of the business that we have created. I want to thank all of our employees for their hard work and dedication to Eurand over the many years of our development. It has been my pleasure and privilege to work with these talented people, and I wish them much success in the new organization.”

Mr. Faherty will retain his position with Eurand through the end of 2010. At that time, John J. Fraher, currently chief commercial officer of Eurand, will become chief executive officer and Mr. Malahias will become non-executive chairman.