Impax Laboratories said today it has agreed to acquire a portfolio that includes 18 generic drugs from Teva Pharmaceutical Industries and affiliates of Allergan for $586 million.
The portfolio being acquired by Impax includes 15 currently marketed drugs, one approved but not launched generic product, a pending ANDA under FDA review, and a generic product under development. Also included are two approved strengths and one pipeline strength, none commercially launched, for a currently marketed product.
The deal expands Impax’s generics portfolio from 49 to 64 products.
“Through this transaction, we will be expanding our portfolio of difficult-to-manufacture or limited-competition products and maximizing utilization of our existing manufacturing facilities in Hayward, California, and Taiwan,” Impax president and CEO Fred Wilkinson said in a statement. “The anticipated acquisition of these currently marketed and pipeline products fits with our strategic priorities of maximizing our generic platform, optimizing R&D, and accelerating business development to create long-term growth.”
As part of the deal, Teva agreed to return to Impax full commercial rights to Impax's pending ANDA for the generic equivalent to Concerta® (methylphenidate hydrochloride). Impax previously partnered with Teva on development of the product.
“The acquisition of full commercial rights to generic Concerta provides an additional opportunity to add another valuable near-term launch and accentuates the strength of our internal R&D program,” Wilkinson added.
The deal is Teva’s third shedding of assets in 2 weeks and the second carried out as a precondition to Teva’s $40.5 billion acquisition of Allergan’s generics business, announced last year.
Approval by the FTC of Teva's acquisition of Allergan's global generics business is among conditions of the Impax–Teva deal, as are FTC approval of Impax as buyer of the assets and customary closing conditions.
Impax said the deal will provide it with a profitable and growing commercialized portfolio that generated approximately $150 million in net sales and approximately $100 million in gross profit last year.
The pending and development pipeline programs are estimated to have U.S. brand and generic sales of approximately $3.1 billion for the 12 months ending in March 2016, Impax said, citing IMS Health National Sales Perspectives™.
Wilkinson said the 15 marketed products Impax is acquiring are currently expected to add approximately $80 million of revenue in the second half of 2016 and offset declining revenue due to recently launched competing versions of diclofenac sodium gel and metaxalone products.
The portfolio Impax is acquiring through the deal is currently expected to add approximately $50 million to the company’s 2016 earnings before interest, taxes, depreciation, and amortization—and increase its earnings per share, now expected to grow by at least 20% over 2015, compared with previous 2016 guidance of at least 10%, Wilkinson added.
The 2016 guidance assumed 12 to 14 generic product launches, including six to eight new generic product approvals. So far this year, Impax has launched two generic products, including one of two products approved by the FDA in 2016.
Impax said it will fund the transaction using $400 million in new fully committed term loans, as well as existing cash.