Emergent Buys Specialty Pharma Company Adapt Pharma for $735 MillionBy
Emergent BioSolutions, a Rockville, Maryland-based specialty biopharmaceutical company and contract manufacturer, has agreed to acquire Adapt Pharma, a Dublin, Ireland-based specialty pharmaceutical company, and its leading product Narcan (naloxone HCl) Nasal Spray for up to $735 million.
Narcan is a needle-free formulation of naloxone, approved by the US Food and Drug Administration and Health Canada, for the emergency treatment of known or suspected opioid overdose as manifested by respiratory and/or central nervous system depression.
“This transaction supports the company’s mission, vision, and strategy to grow through the acquisition of revenue-generating products and businesses that align with its focus on public health threats,” Emergent BioSolutions said in an August 28, 2018 company statement. The acquisition of Adapt Pharma adds Narcan Nasal Spray to Emergent’s portfolio of products with applications in both government and commercial markets as well as commercial operations targeting these markets, including a focus on state and local government purchasers, first-responder groups, retail pharmacies, and opioid addiction treatment centers as key sales channels. Adapt Pharma is also developing new treatment and delivery options to address opioid overdoses. Emergent BioSolutions expects that, with the completion of this acquisition and the recently announced acquisition of PaxVax, a Redwood City, California-based company focused on specialty vaccines for existing and emerging infectious diseases, it will achieve or exceed its growth plan goal of $1 billion in revenue in 2020.
Total consideration for the transaction is up to $735 million consisting of an upfront payment of $635 million and up to $100 million in cash for potential sales-based milestones through 2022. The upfront payment of $635 million consists of $575 million in cash and $60 million in Emergent common stock, all of which are subject to certain adjustments under the agreement.
Upon the closing of the transaction, Emergent will acquire the Narcan Nasal Spray product and a development pipeline of new treatment and delivery options to address opioid overdose, and bring on approximately 50 employees, located in the US, Canada, and Ireland, including those responsible for supply-chain management, research and development, government affairs, and commercial operations.
Source: Emergent BioSolutions