Announcement- first drug of 60 new ones hits the marketConcordia Healthcare Announces Launch of First Pipeline Product, and Positive Amendment to Earn-out Terms of AMCo Agreement
Canada NewsWire
OAKVILLE, ON, Nov. 23, 2015
- Launch demonstrates organic growth potential of newly acquired AMCo platform
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OAKVILLE, ON, Nov. 23, 2015 /CNW/ - Concordia Healthcare Corp. ("Concordia" or the "Company") (NASDAQ: CXRX) (TSX: CXR) announced today that Amdipharm Mercury Limited ("AMCo") has launched Nefopam, a generic version of Accupan.
Nefopam is a non-narcotic painkiller for the treatment of persistent pain that is not being controlled by other painkillers such as paracetamol or aspirin.
"When we acquired AMCo, we identified its deep pipeline as a valuable asset to accelerate Concordia's organic growth," said Mark Thompson, Concordia's Chairman and Chief Executive Officer. "Nefopam's launch, which should be the first of approximately 60 product launches we intend to initiate over the next three years, demonstrates that potential and further diversifies our international portfolio of therapeutics."
Concordia completed its acquisition of U.K.-based speciality pharmaceutical company AMCo on October 21, 2015.
Nefopam is the first generic to market in the United Kingdom in a drug class growing at approximately five per cent annually. According to IMS, the total non-narcotic painkiller market in the U.K. is approximately US$620 million annually. Nefopam is a non-narcotic analgesic that provides effective pain relief in many types of acute or chronic pain such as after surgery, dental pain, muscular pain (including after trauma) and pain associated with cancer.
Concordia also announced today that it has entered into an amendment to the agreement for the sale and purchase of AMCo between the Company, Cinven ^1 , and certain other sellers, pursuant to which the parties have agreed to provide Concordia with the option, which can be exercised by Concordia in whole but not in part prior to
September 30, 2016, to defer the payment of one half of the earn-out payment owing to the sellers to
February 1, 2017, with such deferred amount, if the option is exercised by Concordia, to accrue interest daily at a rate of eight per cent per annum on the basis of a 365-day year from (and including)
November 1, 2016 to (and including)
February 1, 2017.
"We are pleased to work with our largest shareholder, Cinven, to provide Concordia with maximum flexibility to direct our cash from operations," added Mark Thompson.