Impax To Acquire Generic Portfolio from Teva for $586 Million
Impax Laboratories, a specialty pharmaceutical company, has signed definitive agreements with Teva Pharmaceutical Industries Ltd. and affiliates of Allergan for the acquisition of a broad portfolio of generic products across solid oral, inhalable, injectable and topical dosage forms and the return to Impax of its rights to its pending abbreviated new drug application (ANDA) for the generic equivalent to Concerta (methylphenidate hydrochloride) for an aggregate purchase price of $586 million.
Upon closing of the transaction, Impax is expected to add: a portfolio of 15 currently marketed generic products; one approved generic product and two approved strengths of a currently marketed product, which have not yet launched; one pipeline generic product and one pipeline strength of a currently marketed product, which are pending US Food and Drug Administration approval; the full commercial rights to Impax’s pending ANDA for the generic equivalent to Concerta (methylphenidate hydrochloride), a product previously partnered with Teva; and one generic product under development.
The acquired marketed generic products generated approximately $150 million in net sales and approximately $100 million in gross profit in 2015. According to IMS Health (NSP), the pending and development pipeline prorams are estimated to have US brand and generic sales of approximately $3.1 billion for the 12 months ending in March 2016. The aggregate purchase price of $586 million for the portfolio of products will be funded with existing cash and $400 million in new fully committed term loans.
The deal is tied into the divestiture process mandated by the US Federal Trade Commission (FTC) in connection with the acquisition by Teva of the US generics business of Allergan. The deal is subject to customary closing conditions, including approval by the FTC of Impax as buyer of the assets and the closing of Teva’s acquisition of Allergan’s global generics business.
Source: Impax Laboratories