Concordia Healthcare to buy certain assets of Covis Pharma for US$1.2bn
The all-cash deal will be financed with a mix of term loans, bonds and equity
Concordia Healthcare Corp of Toronto, Canada, is to purchase certain assets of privately held Covis Pharma, headquartered in Switzerland, for US$1.2bn.
Concordia said the all-cash deal for Covis Pharma and Covis Injectables will be financed with a mix of term loans, bonds and equity.
The Covis drug portfolio being acquired consists of 18 branded, injectables and authorised 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 the longer-term, this transaction creates greater scale and diversification for Concordia
Concordia said the Covis operations are expected to report revenue of between $140m–$145m for 2014.
For the full year, Covis expects to report revenue of between $119m–$122m.
'Covis’ strong commercial momentum will have an immediate and material impact on our top and bottom line financial results,' said Mark Thompson, Chief Executive 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.'
Concordia, which focuses on legacy pharmaceutical products, orphan drugs, and medical devices for diabetics, expects to record immediate synergies of about $20m following the integration of Covis’ portfolio.
The acquisition is expected to close in the second quarter of 2015, subject to satisfaction of customary closing conditions. The Board of Directors of all parties to the transaction have approved the acquisition.