Sector News

Canada’s Concordia Healthcare to Buy Amdipharm

September 9, 2015
Life sciences

Concordia Healthcare Corp. on Tuesday said it would buy U.K.-based Amdipharm Mercury Ltd. from European private-equity firm Cinven for about $1.2 billion in cash and around $700 million in stock, a deal the Canadian pharmaceutical company calls transformational.

Concordia said the acquisition, valued at about $3.5 billion including debt, gives it a platform to expand globally and adds more than 190 niche pharmaceutical products to its current portfolio.

“This acquisition is a key milestone and pivotal turning point in Concordia’s strategy, which gives us the platform to take our business to the next level,” Concordia Chief Executive Mark Thompson said in a statement. “The combination of our highly complementary yet geographically diverse businesses is truly transformational.”

The deal further bolsters Oakville, Ontario-based Concordia’s operations after its $1.2 billion purchase earlier this year of certain assets of Covis Pharma Holdings S.a.r.l. Covis helped the Canadian firm nearly triple its revenue in the first half of this year to $114 million. In late June, Concordia listed on Nasdaq to help increase its exposure.

Amdipharm, or AMCo, was created by Cinven in 2012 through the merger of two niche pharmaceutical companies, Amdipharm and Mercury Pharma Group. It acquired both companies in 2012, paying £465 million ($716 million) for Mercury and £367 million for Amdipharm. The group has grown further through a series of smaller deals.

AMCo sells off-patent drugs in therapy areas for which treatment regimens are well-established and less likely to face competition from innovative new drugs. It had revenue in 2014 of £293 million in 2014, up 21.5% from a year earlier.

Concordia said the combined company, on a pro forma basis, is expected to have revenue of between $870 million and $920 million for 2015. It also expects the deal to boost its adjusted share earnings by more than 35% in the first full year.

The Canadian company will issue 8.49 million shares under the deal, which will give Cinven a 19.9% stake in Concordia. Closing is expected in the fourth quarter.

By Judy McKinnon

Source: Wall Street Journal

comments closed

Related News

February 25, 2024

Pharma CFOs need R&D vigilance in tough economic times

Life sciences

As inflation, high interest rates and a tight investment environment continue to create headaches, 72% of CFOs said economic volatility poses the same or greater risk to their business this year compared to 2023 in a recent survey from BDO — and there are more changes afoot.

February 25, 2024

Agilent CEO Mike McMullen to retire, succeeded by lab services head

Life sciences

McMullen, who’s also currently president of Agilent, is set to abdicate both roles on May 1, according to an announcement the company put out Wednesday afternoon. From there, McMullen will spend a few months serving as an advisor to Agilent and to his successor until his retirement becomes final on Oct. 31.

February 25, 2024

AstraZeneca completes Gracell Biotechnologies acquisition for $1.2bn

Life sciences

AstraZeneca has concluded its acquisition of China-based clinical-stage biopharmaceutical company Gracell Biotechnologies for $1.2bn. The acquisition, initially agreed in December 2023, positions Gracell as a wholly owned AstraZeneca subsidiary with operations continuing in the US and China.

How can we help you?

We're easy to reach