Galenica To Acquire Relypsa for $1.53 Billion
Galenica Group, a Bern, Switzerland-based specialty pharmaceutical company, has agreed to acquire Relypsa, a Redwood City, California-based biopharmaceutical company, for $32 per share or approximately $1.53 billion. The boards of directors of both Relypsa and Galenica have approved the merger agreement, and Relypsa's board of directors will recommend that Relypsa shareholders accept the offer once it is commenced. The transaction is expected to close during the third quarter of 2016.
With the acquisition, Galenica would gain full global rights to Relypsa's Veltassa (patiromer), a potassium binder in oral suspension for treating hyperkalemia, which was approved by the US Food and Drug Administration in October 2015 and commercially launched in late December 2015. Veltassa is currently under regulatory review in Europe.
The acquisition also strengthens Galenica in the US, through its division, Vifor Pharma, which would gain an integrated commercial organization in the United States and strengthen its presence in the US cardio-renal market, an area of focus. Galenica develops, manufactures and markets pharmaceutical products, runs pharmacies, provides logistical and database services, and sets up networks. The Vifor Pharma division is a specialty pharmaceutical company that researches, develops, produces and markets its own pharmaceutical products with two main areas of focus: iron deficiency with and without anaemia; and infectious diseases/OTX (prescribed non-presciption) products.
Galenica's board of directors are proceeding with the separation of Galenica into two independently listed companies, Vifor Pharma and Galenica SantÃ©, which Galenica previously announced in May 2016. This will be partly financed by equity proceeds to be raised in conjunction with the envisaged division of Galenica in 2017.