- ADVANZ PHARMA (TSX:ADVZ) has signed an agreement to acquire the rights to a product portfolio from pharmaceutical company UCB
- The alprostadil product portfolio consists of two injectable Prostaglandin drugs, for treating erectile dysfunction and peripheral arterial disease
- ADVANZ PHARMA intends to pay for the C$114 million acquisition with cash on hand
- The acquisition is likely to close on, or around April 1, 2020
- ADVANZ PHARMA’s share price remains unchanged, and is currently trading at $6.18 per share
ADVANZ PHARMA (TSX:ADVZ) has signed a definitive agreement to acquire the rights to a portfolio of alprostadil products from UCB S.A.
The acquisition will give ADVANZ PHARMA rights to two established, niche injectable Prostaglandin E1 formulations.
The alprostadil formulations are used for the treatment of conditions including erectile dysfunction and peripheral arterial occlusive disease. Alprostadil is currently marketed under brand names including Prostavasin, Viridal, Vasaprostan, and Edex.
ADVANZ PHARMA’s acquisition will provide rights to the products in 10 European Union nations, as well as Russia, Ukraine, Brazil, and the United Kingdom. In these territories, the combined sale of all alprostadil brands generated approximately C$44.6 million in revenue just last year.
The acquisition transaction will cost about $114 million, which ADVANZ PHARMA plans to pay for with cash on hand. Upon closing, the company will also pay UCB an inventory deposit of approximately $18.8 million.
ADVANZ PHARMA expects that the portfolio rights acquisition will close on, or around April 1, 2020.
The company’s CEO, Graeme Duncan, commented on the purchase.
“We believe these medicines are excellent strategy fits with our global commercial infrastructure and are well aligned with our product acquisition focus,” he said.
ADVANZ PHARMA has indicated a strategic focus on further expanding its product portfolio. As 2020 marches on, the company plans to deliver mid-term value and long-term growth by acquiring more products and platforms, and by expanding its own pipeline.
ADVANZ PHARMA’s share price remains unchanged, and is currently trading at $6.18 per share, as of 10:01am EST.