Pediapharm Inc. completed its previously announced acquisitions of Medexus Inc. and Medac Pharma Inc.

Canada-based Medexus is focused on rheumatology, women's health and dermatology. Pediapharm acquired Medexus for C$23 million, issuing 67,646,009 common shares at 34 Canadian cents each.

Medac Pharma, which sells rheumatoid arthritis therapy Rasuvo, is the U.S. business of Germany's medac GmbH. The company was acquired for up to US$50 million, US$13.1 million of which was cash. Pediapharm also issued 7,260,235 units, worth US$1.9 million, at 34 Canadian cents each. A unit comprises 1 common share and 0.5 of a five-year warrant to buy 1 common share for 63 Canadian cents. The remaining consideration was a US$5 million contingent cash payment and US$30 million in annual payments.

Additionally, medac agreed to supply its products to Pediapharm, which will sell them in the U.S. for an initial term of 12 years.

To help complete the acquisitions, Pediapharm raised about C$58.5 million through the issue of subscription receipts, convertible into units and convertible debentures.

Bloom Burton Securities Inc. advised and assisted Pediapharm in evaluating the acquisitions, which remain subject to the TSX Venture Exchange's final approval.

Verdun, Canada-based Pediapharm distributes prescription medicines for pathological conditions.