Horizon Pharma has agreed to sell its European subsidiary that owns rights to marketed rare-disease drugs Procysbi® (cysteamine bitartrate) delayed-release capsules and Quinsair™ (levofloxacin inhalation solution) in the EMEA (Europe, the Middle East and Africa) region to Chiesi Farmeceutici.
Chiesi has agreed to pay Horizon Pharma $70 million upfront, plus an undisclosed amount in additional payments tied to achieving sales milestones.
Procysbi is an FDA-approved cystine-depleting agent indicated for nephropathic cystinosis in adults and children ages 2 and older. Quinsair is an antibiotic approved in Europe and Canada—but not in the U.S.—to treat long-term lung infection caused by Pseudomonas aeruginosa in adults with cystic fibrosis.
“The acquisition of the marketing rights for Procysbi and Quinsair will further strengthen our rare disease offering in the EMEA regions,” Chiesi CEO Ugo Di Francesco said yesterday in a statement. “We have a strong commitment to the rare disease area and this is an important opportunity to enhance our portfolio and contribute to improve the quality of life of nephropathic cystinosis and cystic fibrosis patients.”
The subsidiary to be divested has approximately 40 employees, as well as facilities in The Netherlands, France, and Germany. Horizon said it will maintain control of manufacturing supply in the EMEA regions through its third-party supplier.
Timothy P. Walbert, Horizon Pharma’s chairman, president, and CEO, added that the deal originated soon after his company disclosed plans in September to acquire Raptor Pharmaceuticals for approximately $800 million, a deal designed to create a combined developer with a stronger focus on rare disease drugs.
“Following the Raptor acquisition at the end of last year, we completed an evaluation of the commercial infrastructure required to provide Procysbi and Quinsair in Europe, the Middle East, and Africa, and determined that these medicines would be best supported by a company with a larger geographic footprint,”
Horizon added that it will maintain marketing rights for Procysbi and Quinsair in the U.S., Canada, and Latin America.
The deal is subject to receipt of antitrust approvals and other customary closing conditions and is expected to close by the end of the second quarter.
Should the deal close in the second quarter, Horizon said, it anticipates a reduction of approximately $15 million in full-year 2017 net sales related to Procysbi and Quinsair in the EMEA regions and a neutral impact on its full-year 2017 adjusted earnings before interest, taxes, depreciation, and amortization (EBIDTA).
This would result in a full-year 2017 net sales guidance range of $985 million to $1.020 billion and no change to Horizon’s full-year 2017 adjusted EBITDA guidance range of $315 million to $350 million, the company said.