Concordia Healthcare Corp. entered into an asset purchase agreement to acquire the commercial assets of privately held Covis Pharma and Covis Injectables (together “Covis”) for $1.2 billion in cash. The acquisition is expected to close in the second quarter of 2015.
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, according to a press release. The 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 $47 and $52 million related to the portfolio. Overall for 2014, Covis expects to have revenue between $140 and $145 million with a gross profit margin of approximately 90%.
“Covis’ strong commercial momentum will have an immediate and material impact on our top and bottom line financial results,” said Mark Thompson, CEO of Concordia. “In the longer-term, this transaction creates greater scale and diversification for Concordia, which should support the continued execution of our aggressive growth plans.” Read the full release