Sector News

Horizon Pharma in $800M Raptor rare disease buy

September 13, 2016
Life sciences

Ireland’s Horizon Pharma will pay a 21% premium for California-based Raptor Pharmaceutical as it looks to bolster its rare disease portfolio while also expanding its geographical footprint. But it will also gain a tough pipeline that has been hit by failures over the past year.

The deal, which is worth $9 a share–or around $800 million–will see Horizon gain access to Procysbi (cysteamine bitartrate) for the orphan condition nephropathic (kidney) cystinosis, as well as Quinsair, which is licensed in Europe and Canada to help manage chronic pulmonary infections due to Pseudomonas aeruginosa in patients with cystic fibrosis.

The merger will also diversify Horizon’s revenue with 11 medicines across three business units, namely in orphan, rheumatology and primary care–as well as bolstering its rare disease revenue, which in the first 6 months of 2016 was nearly half of Horizon’s total revenue.

The deal should be done by the end of the year. This will be good news to Novato, CA-based Raptor, which last year pulled the plug on its drug for NASH and then said it would be pushing ahead with a pivotal study for a new drug to treat Huntington’s even though it failed the primary endpoint in a Phase II/III trial.

“The proposed acquisition of Raptor furthers our commitment to helping people with rare diseases and is a significant step in advancing our strategy to expand our rare disease business,” said Timothy Walbert, chairman, president and CEO of Horizon.

“Along with the potential for accelerated revenue growth, the addition of Raptor strengthens our U.S. orphan business and provides a platform to expand our orphan business in Europe and other key international markets. We look forward to working with new patient communities and building on the success of the Raptor team.”

“This transaction will deliver significant and immediate value to our shareholders through a compelling all-cash premium and provide ongoing value to our patients, their families and the physicians who treat them,” added Julie Anne Smith, president and CEO of Raptor.

Horizon said it will pay for most of the transaction, namely $675 million, through external debt, along with cash on hand for the rest. As of June 30, 2016, the company had $424.5 million of cash and cash equivalents on its balance sheet, it said in a statement, with a market cap of around $2.8 billion.

Horizon was down 1.5% premarket on the news this morning, while Raptor was up 20% premarket to $7.45 a share.

By Ben Adams

Source: Fierce Biotech

comments closed

Related News

January 29, 2023

Colorcon, Inc. signs Put agreement with intent to acquire controlled atmosphere packaging specialist Airnov Healthcare Packaging

Life sciences

Airnov provides critical healthcare industries with high-quality, controlled atmosphere packaging, to protect their products from moisture and oxygen. The business has manufacturing facilities in the USA, France, China and India and employs around 700 people.

January 29, 2023

Takeda pledges up to $1.13B for rights to Hutchmed’s cancer drug fruquintinib outside of China

Life sciences

Takeda of Japan has partnered with Hong Kong-based Hutchmed, gaining the commercial rights to colorectal cancer drug fruquintinib outside of China for $400 million up front, plus $730 million in potential milestone payments. Takeda also will help develop fruquintinib, which can be applied to subtypes of refractory metastatic colorectal cancer, regardless of biomarker status, the companies said.

January 29, 2023

Vir taps Bayer dealmaker Marianne De Backer as its next CEO

Life sciences

On April 3, Scangos, who’s been chief executive officer at Vir since the start of 2017, will hand over the reins to Marianne De Backer, Ph.D. De Backer comes over from Bayer, where she currently heads up pharmaceutical strategy, business development and licensing. Alongside her CEO appointment, De Backer is set to join Vir’s board of directors, the company said Wednesday.

How can we help you?

We're easy to reach