Canada's Concordia Healthcare Corp to buy Amdipharm Mercury Ltd from private equity firm Cinven for $1.9 billion. This deal will further boost its portfolio of drugs to 200 from 20 and will give a foothold in overseas markets.
Amdipharm Mercury is a merger of Mercury Pharma and Amdipharm. It buys off-patent drugs from other pharma companies such as Novartis AG, GlaxoSmithKline Plc and Abbott Laboratories to sell them in 100 countries.
AdvertisementAmdipharm's 190 drugs are used in several difficult-to-treat conditions including hyperthyroidism, depression and bacterial infections.
Concordia CEO Mark L Thompson, said, "This acquisition is a key milestone and pivotal turning point in Concordia's strategy, which gives us the platform to take our business to the next level. We are not only acquiring products and commercial infrastructure, but a seasoned management team who has done a fantastic job of building a solid and successful international pharma operation."
The deal is expected to boost Concordia's sales to about $870-$920 million in 2015 on a pro-forma basis, of which about $530-$560 million is expected to come from Amdipharm. The deal is expected to close in the fourth quarter of 2015.
John Beighton, Chief Executive Officer of AMCo, added, "We look forward to being part of the Concordia business - as the combination with AMCo is expected to create significant opportunities for further growth in the global pharmaceutical sector. We have a shared vision for growth that should greatly benefit employees and stakeholders of the combined business."