Concordia Healthcare Corp. to Acquire Covis Pharma Commercial Assets For $1.2 Billion
March 9, 2015
/CNW/ — Concordia Healthcare Corp. (“Concordia” or the “Company”) (TSX: CXR) (OTCQX: CHEHF), a diverse healthcare company focused on legacy pharmaceutical products, orphan drugs, and medical devices for the diabetic population, today announced it has entered into a definitive asset purchase agreement to acquire substantially all of the commercial assets of privately held Covis Pharma S.à.r.l and Covis Injectables, S.à.r.l (together “Covis”) for
in cash. All financial references are in U.S. dollars unless otherwise noted.
The Covis drug portfolio being acquired (the “Portfolio”) consists of 18 branded and authorized generic products with stable revenue, strong margins and free cash flow. The distinctive product portfolio includes branded pharmaceuticals, injectables and authorized generics that address life threatening and other serious medical conditions in various therapeutic areas including cardiovascular, central nervous system, oncology and acute care markets. Key products are Nilandron®, for the treatment of metastatic prostate cancer; Dibenzyline®, for the treatment of pheochromocytoma; Lanoxin®, for the treatment of mild-to-moderate heart failure and atrial fibrillation; and, Plaquenil®, for the treatment of lupus and rheumatoid arthritis.
In its fourth quarter of 2014, Covis expects to have revenue between
US$47 and US$52 million
related to the Portfolio. Overall for 2014, Covis expects to have revenue between
US$140 and US$145 million
with a gross profit margin of approximately 90%.
believes that it can integrate the Portfolio it is acquiring into its existing business and leverage its existing infrastructure. Through the elimination of redundant distribution and G&A expenses,
expects to recognize immediate synergies of approximately
“Covis’ strong commercial momentum will have an immediate and material impact on our top and bottom line financial results,” said
, Chief Executive Officer of
. “In the longer-term, this transaction creates greater scale and diversification for
, which should support the continued execution of our aggressive growth plans.”