Impax to Sell Taiwanese Manufacturing FacilityBy
Impax Laboratories, a Hayward, California-based specialty pharmaceutical company focused on controlled-release and specialty generics, has agreed to sell its manufacturing facility in Taiwan (Impax Taiwan) to Bora Pharmaceuticals, a Taipei, Taiwan-headquartered pharmaceutical company. The sale is part of Impax’s plans to streamline operations and reduce costs.
Under the agreement, Bora will purchase all of the issued share capital in Impax Taiwan and certain loans outstanding between Impax and Impax Taiwan for a total purchase price of $18.5 million. As a result of the sale, Impax expects to record a pre-tax impairment charge of approximately $70 million to $80.0 million in the fourth quarter of 2017.
Impax has also signed a supply agreement with Bora, effective upon closing of the transaction, to contract the manufacture and supply of certain marketed and development products from Impax currently manufactured by Impax Taiwan. Additionally, Bora will have the rights to market and sell Impax’s branded Parkinson’s drug Rytary (carbidopa and levodopa) (approved as Numient outside the US) in Taiwan. The transaction is anticipated to close in the first quarter of 2018, subject to customary closing conditions.
Source: Impax Laboratories