Old news but something to look forward to as NPH has way more than 18 generics!
/Not for release in the United States./
- Creates Diversified, Scaled Specialty Pharmaceutical Company and Expands Concordia’s Platform for Future Growth
- Addition of 18 Branded and Authorized Generic Products Provides Revenue Diversification and Enhances the Legacy Portfolio Margin Profile
- Excellent Fit with Concordia’s Existing Operations and Product Portfolio
- Compelling Financial Profile of the Portfolio:
- 2014E Revenues between US$140 and US$145 million
- 2014E Q4 Revenues between US$47 and US$52 million
- 2014E Gross Margin of Approximately 90%
- Immediately Recognizable Synergies of Approximately US$20 million
- The Transaction is Expected to be Over 50% Accretive to Adjusted EPSi in 2015
- Fully Committed Financing from RBC Capital Markets
- Concordia to Hold Conference Call to Discuss Covis Transaction at 8:30 am ET on Monday, March 9, 2015
TORONTO, March 9, 2015 /CNW/ – Concordia Healthcare Corp. (“Concordia” or the “Company”) (TSX: CXR) (OTCQX: CHEHF), a diverse healthcare company focused on legacy pharmaceutical products, orphan drugs, and medical devices for the diabetic population, today announced it has entered into a definitive asset purchase agreement to acquire substantially all of the commercial assets of privately held Covis Pharma S..r.l and Covis Injectables, S..r.l (together “Covis”) for US$1.2 billion in cash. All financial references are in U.S. dollars unless otherwise noted.
The Covis drug portfolio being acquired (the “Portfolio”) consists of 18 branded and authorized generic products with stable revenue, strong margins and free cash flow. The distinctive product portfolio includes branded pharmaceuticals, injectables and authorized generics that address life threatening and other serious medical conditions in various therapeutic areas including cardiovascular, central nervous system, oncology and acute care markets. Key products are Nilandron®, for the treatment of metastatic prostate cancer; Dibenzyline®, for the treatment of pheochromocytoma; Lanoxin®, for the treatment of mild-to-moderate heart failure and atrial fibrillation; and, Plaquenil®, for the treatment of lupus and rheumatoid arthritis.
In its fourth quarter of 2014, Covis expects to have revenue between US$47 and US$52 million related to the Portfolio. Overall for 2014, Covis expects to have revenue between US$140 and US$145 million with a gross profit margin of approximately 90%.
Concordia believes that it can integrate the Portfolio it is acquiring into its existing business and leverage its existing infrastructure. Through the elimination of redundant distribution and G&A expenses, Concordia expects to recognize immediate synergies of approximately $20 million.
“Covis’ strong commercial momentum will have an immediate and material impact on our top and bottom line financial results,” said Mark Thompson, Chief Executive Officer of Concordia. “In the longer-term, this transaction creates greater scale and diversification for Concordia, which should support the continued execution of our aggressive growth plans.”