LONDON, March 6, 2020 /PRNewswire/ - ADVANZ PHARMA Corp. Limited ("ADVANZ PHARMA" or "the Company") (TSX:ADVZ), a global pharmaceutical company focused on serving the needs of patients and healthcare providers around the world with enhanced access to high quality, niche-established medicines, today announced it signed a definitive agreement to acquire the rights to a portfolio of alprostadil products in 10 European Union countries, as well as the United Kingdom, Russia, Ukraine and Brazil, from UCB S.A.
The transaction has a purchase price of $84 million1 (€75 million) and ADVANZ PHARMA intends to pay for the acquisition with cash on hand. On closing, ADVANZ PHARMA will also pay a deposit for inventory of approximately $14 million. The Company anticipates that the acquisition will close on, or around, April 1, 2020.
The alprostadil product portfolio consists of two established, niche, injectable Prostaglandin E1 formulations for the treatment of erectile disfunction and peripheral arterial occlusive disease.
Alprostadil is marketed under the brand names of Prostavasin®, Viridal®, Vasaprostan® and Edex®.
"We believe these medicines are excellent strategic fits with our global commercial infrastructure and are well aligned with our product acquisition focus," said Graeme Duncan, Chief Executive Officer of ADVANZ PHARMA. "In addition, we believe that the acquisition multiple demonstrates our disciplined and structured approach to M&A, as well as our ability to effectively compete in the divestment market."
Combined sales of all alprostadil brands generated approximately $33.3 million in revenue in 2019 in the territories where ADVANZ PHARMA will hold the rights.
Looking ahead, with a clear strategic focus, ADVANZ PHARMA believes it will have additional opportunities to expand its product portfolio to deliver mid-term value and long-term growth, through further product and platform acquisitions, and pipeline expansion.
The Company intends to focus on niche and differentiated generics, complex specialty and value-added medicines.
About ADVANZ PHARMA
ADVANZ PHARMA operates an international specialty pharmaceutical business with a diversified portfolio of more than 200 branded and unbranded products, and sales in more than 90 countries, and going forward, is focused on becoming the leading platform for niche-established medicines, with advanced commercial capabilities throughout Western Europe.
ADVANZ PHARMA's registered office is in St Helier, Jersey. The Company operates globally through its subsidiaries in Sydney, Australia; London, England; Mumbai, India; Dublin, Ireland; and in Helsingborg, Sweden.
1Based on a EUR / USD foreign exchange rate of 1.1145 on March 4, 2020.
Notice Regarding Forward-looking Statements and Information:
This news release includes forward‐looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward‐looking information within the meaning of Canadian securities laws. Often, but not always, forward‐looking statements and forward‐looking information can be identified by the use of words such as "plans", "is expected", "expects", "scheduled", "intends", "contemplates", "anticipates", "believes", "proposes" or variations (including negative and grammatical variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Such statements are based on the current expectations of ADVANZ PHARMA's management, and are based on assumptions and subject to risks and uncertainties. Although ADVANZ PHARMA's management believes that the assumptions underlying these statements are reasonable, they may prove to be incorrect. The forward‐looking events and circumstances discussed in this news release may not occur by certain dates or at all and could differ materially as a result of known and unknown risk factors and uncertainties affecting ADVANZ PHARMA, including risks associated with ADVANZ PHARMA's securities, increased indebtedness and leverage, ADVANZ PHARMA's growth, risks associated with the use of ADVANZ PHARMA's products, the inability to generate cash flows, revenues and/or stable margins, the inability to repay debt and/or satisfy future obligations, risks associated with a delay in releasing ADVANZ PHARMA's financial statements (which could result in a default under ADVANZ PHARMA's debt agreements and a violation of applicable laws), ADVANZ PHARMA's outstanding debt, risks associated with the geographic markets in which ADVANZ PHARMA operates and/or distributes its products, the pharmaceutical industry and the regulation thereof, regulatory investigations and proceedings, the failure to comply with applicable laws, risks associated with distribution agreements, economic factors, market conditions, risks associated with growth and competition, the failure to obtain regulatory approvals, the equity and debt markets generally, general economic and stock market conditions, risks associated with fluctuations in exchange rates (including, without limitation, fluctuations in currencies), political risks (including changes to political conditions), risks associated with the United Kingdom's exit from the European Union (including, without limitation, risks associated with regulatory changes in the pharmaceutical industry, changes in cross‐border tariff and cost structures and the loss of access to the European Union global trade markets), risks related to patent infringement actions, the loss of intellectual property rights, risks and uncertainties detailed from time to time in ADVANZ PHARMA's filings with the Canadian Securities Administrators, and many other factors beyond the control of ADVANZ PHARMA. Although ADVANZ PHARMA has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward‐looking statements and information, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. No forward‐looking statement or information can be guaranteed. Except as required by applicable securities laws, forward‐looking statements and information speak only as of the date on which they are made and ADVANZ PHARMA undertakes no obligation to publicly update or revise any forward‐looking statement or information, whether as a result of new information, future events, or otherwise.
SOURCE ADVANZ PHARMA Corp.
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