- Company acquires international rights to Salagen® tablets (pilocarpine hydrochloride) (excluding Japan rights) and Panretin® (alitretinoin) gel 0.1% from Eisai Inc. for $30 million in cash plus approximately $3.3 million for purchased inventory and related prepayments. ADVANZ PHARMA will pay for the acquisition with cash on hand.
MISSISSAUGA, ON, April 1, 2019 /CNW/ - ADVANZ PHARMA Corp. ("ADVANZ PHARMA" or "the Company") (TSX:ADVZ), an international specialty 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 acquired the rights to two established medicines, Salagen® (pilocarpine hydrochloride) and Panretin® (alitretinoin), from Eisai Inc. (Eisai) for $30 million in cash plus approximately $3.3 million for purchased inventory and related prepayments.
ADVANZ PHARMA will pay for the acquisition with cash on hand.
"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, the transaction demonstrates that the Company has returned as a participant in the global M&A marketplace, and reinforces our commitment to our new strategy, known as PLAN."
Terms of the agreement include a cash payment of $30 million plus approximately $3.3 million for purchased inventory and related prepayments from ADVANZ PHARMA from its cash on hand to Eisai, in return for the global rights to Salagen® tablets (excluding Japan); and for the global rights to Panretin® gel.
Salagen® indications include the treatment of symptoms of dry mouth from salivary gland hypofunction caused by radiotherapy for cancer of the head and neck, and the treatment of symptoms of dry mouth in patients with Sjogren's Syndrome.
Panretin® indications include the topical treatment of cutaneous lesions in patients with AIDS-related Kaposi's sarcoma (KS). Panretin® gel is not indicated when systemic anti-KS therapy is required (for example, more than 10 new KS lesions in the prior month, symptomatic lymphedema, symptomatic pulmonary KS, or symptomatic visceral involvement). There is no experience to date using Panretin® gel with systemic anti-KS treatment.
Combined, Salagen® and Panretin® generated approximately $13 million in revenue in 2018 in the territories where ADVANZ PHARMA will hold the rights.
The acquisition announced today follows the Company's recent rebranding to ADVANZ PHARMA in the fourth quarter of 2018, and the completion of its recapitalization in September 2018.
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 acquisitions, pipeline expansion, optimisation, and licensing and development partnerships. The Company intends to focus on niche and differentiated generics, complex specialty and value-added medicines.
In 2019, as previously disclosed, the Company will focus on implementing its PLAN strategy, an acronym that stands for:
P - product expansion
L - leverage global capability
A - acquire and integrate
N - new start and vision
About ADVANZ PHARMA
ADVANZ PHARMA operates an international specialty pharmaceutical business with a diversified portfolio of more than 200 patented and off-patent 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 operates out of facilities in Mississauga, Ontario and, through its subsidiaries, operates out of facilities in Sydney, Australia; Bridgetown, Barbados; London, England; Mumbai, India; Dublin, Ireland; St. Helier, Jersey; and in Helsingborg, Sweden.
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, regarding ADVANZ PHARMA and its business, which may include, but are not limited to, statements with respect to Salagen® and Panretin® being excellent strategic fits for the Company and aligned with the Company's product acquisition focus, ADVANZ PHARMA being a participant in the global M&A marketplace, ADVANZ PHARMA's PLAN strategy and implementation of such strategy, ADVANZ PHARMA having additional opportunities to expand its product portfolio through acquisitions, pipeline expansion, optimisation and licensing, and development partnerships, ADVANZ PHARMA being able to deliver mid-term value and long-term growth, and ADVANZ PHARMA becoming the leading platform for niche-established medicines, with advanced commercial capabilities throughout Western Europe. 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 the use of Salagen® and Panretin® and with the use of ADVANZ PHARMA's products, the pharmaceutical industry and the regulation thereof, regulatory investigations, risk associated with the implementation of ADVANZ PHARMA's PLAN strategy, 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 and uncertainties detailed from time to time in ADVANZ PHARMA's filings with the Securities and Exchange Commission and 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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