ADVANZ PHARMA Corp. Limited Announces Definitive Agreement to Acquire The Rights To A Portfolio Of Alprostadil Products From UCB S.A. For Approximately $84 Million
LONDON, March 6, 2020 /CNW/ - ADVANZ PHARMA Corp. Limited ("ADVANZ PHARMA" or "the Company") (TSX:ADVZ), a global pharmaceutical company focused on serving the needs of patients and healthcare providers around the world with enhanced access to high quality, niche-established medicines, today announced it signed a definitive agreement to acquire the rights to a portfolio of alprostadil products in 10 European Union countries, as well as the United Kingdom, Russia, Ukraine and Brazil, from UCB S.A.
The transaction has a purchase price of $84 million1 (€75 million) and ADVANZ PHARMA intends to pay for the acquisition with cash on hand. On closing, ADVANZ PHARMA will also pay a deposit for inventory of approximately $14 million. The Company anticipates that the acquisition will close on, or around, April 1, 2020.
The alprostadil product portfolio consists of two established, niche, injectable Prostaglandin E1 formulations for the treatment of erectile disfunction and peripheral arterial occlusive disease.
Alprostadil is marketed under the brand names of Prostavasin®, Viridal®, Vasaprostan® and Edex®.
"We believe these medicines are excellent strategic fits with our global commercial infrastructure and are well aligned with our product acquisition focus," said Graeme Duncan, Chief Executive Officer of ADVANZ PHARMA. "In addition, we believe that the acquisition multiple demonstrates our disciplined and structured approach to M&A, as well as our ability to effectively compete in the divestment market."
Combined sales of all alprostadil brands generated approximately $33.3 million in revenue in 2019 in the territories where ADVANZ PHARMA will hold the rights.
Looking ahead, with a clear strategic focus, ADVANZ PHARMA believes it will have additional opportunities to expand its product portfolio to deliver mid-term value and long-term growth, through further product and platform acquisitions, and pipeline expansion.
The Company intends to focus on niche and differentiated generics, complex specialty and value-added medicines.
About ADVANZ PHARMA
ADVANZ PHARMA operates an international specialty pharmaceutical business with a diversified portfolio of more than 200 branded and unbranded products, and sales in more than 90 countries, and going forward, is focused on becoming the leading platform for niche-established medicines, with advanced commercial capabilities throughout Western Europe.
ADVANZ PHARMA's registered office is in St Helier, Jersey. The Company operates globally through its subsidiaries in Sydney, Australia; London, England; Mumbai, India; Dublin, Ireland; and in Helsingborg, Sweden.