Mylan is to acquire Ireland-based injectable drugs firm Bioniche Pharma Holdings for $550 million in cash. Mylan claims the deal will provide it with immediate entry into the North American market, which represents Bioniche's primary sales territory.
Bioniche reported net revenues of about $130 million in the 12 months to May 31. The majority of sales derive from business in the U.S. The firm has 30 marketed products and a pipeline that inculdes 15 ANDAs pending FDA approval, and over 25 products in development.
Mylan is a generic and specialty pharmaceuticals company operating in over 140 countries. The firm says it will combine Bioniche with its own unit dose business, UDL Laboratories, to form Mylan Institutional. The new segment will focus on North American hospital and institutional markets including group purchasing organizations, wholesalers, hospitals, surgical, and radiology services as well as home infusion and retail fields.
“This acquisition satisfies one of our long-standing objectives of filling product and therapeutic gaps in our U.S. portfolio,” comments Heath Bresch, Mylan’s president. “In addition to filling the gap for Mylan in this important therapeutic category and because of the nature of the institutional marketplace, Bioniche Pharma will fill an extremely important prerequisite toward the viability of the commercialization of Mylan’s own generic biologics platform in the near future.”