Belgian pharmaceutical company UCB SA (UCB.BT), Advent International and Avista Capital Partners ended an acquisition agreement that would have seen Advent and Avista buy UCB’s U.S.-based speciality generics subsidiary for $ 1.5 billion, the company said in a press release.
UCB said it still plans to divest the generics unit, Kremers Urban Pharmaceutical Inc. It said the decision to terminate the acquisition agreement, which was signed last month, was a result of an “unexpected conflict” between the timing of the deal and a regulatory process launched in the U.S.
On Nov. 14, Kremers Urban said it had been informed by the U.S. Food and Drug Administration that the agency wanted an additional study on one of the company’s products–the methylphenidate hydrochloride extended-release (ER) tablet.
“While we are working on clarifying the situation around methylphenidate ER we will continue the divestiture process for Kremers Urban,” said Detlef Thielgen, Chief Financial Officer of UCB.
UCB said Tuesday’s announcement doesn’t impact the company’s most recent 2014 financial outlook, with the firm contining to expect total revenue of EUR3.15 billion-EUR3.25 billion ($3.94 billion-$4.07 billion) and underlying profits of EUR590 million to EUR620 million.
UCB’s shares closed 0.6% higher at EUR64.06.
By Laurence Norman
Source: Dow Jones Business News