- ADVANZ PHARMA Corp (TSX:ADVZ) has agreed to acquire Correvio Pharma Corp (TSX:CORV) for just under C$106M
- Advanz PHARMA’s subsidiary, Mercury Pharma Group, will acquire all of Correvio’s issued and outstanding shares
- The acquisition of Correvio will diversify ADVANZ PHARMA’s portfolio, and expand its presence in Europe
- Correvio will hold a meeting of shareholders to gain approval of the transaction
- Correvio’s share price is up 9.52 per cent, and is currently trading at $0.46 per share
Pharmaceutical company Correvio Pharma (TSX:CORV) will be acquired by ADVANZ PHARMA for just under C$106 million.
Yesterday the companies entered an arrangement in which ADVANZ PHARMA agreed to acquire all of Correvio’s issued and outstanding shares.
ADVANZ PHARMA will also repay Correvio’s outstanding debt of approximately $67 million.
ADVANZ PHARMA will execute the acquisition through its wholly-owned subsidiary, Mercury Pharma Group. The company will pay for the acquisition with cash on hand.
Correvio CEO, Mark H.N. Corrigan, called the partnership with ADVANZ PHARMA “the best outcome for shareholders, stakeholders, and employees.”
“Bringing the highly skilled and talented employees from the two organisations together will deliver increased sale, depth of commercial capability, breadth of geographical reach, and complementary business models to bring important medicines to patients across the globe,” he added.
ADVANZ PHARMA CEO, Graeme Duncan, said the acquisition will diversify the company’s product portfolio, and expand its presence in Europe.
“Correvio’s highly experienced European commercial team provides us with a direct commercial presence in France, Germany, Spain, Italy, and the Benelux region. It will also further strengthen our existing presence in the Nordics and the United Kingdom.
“This transformative transaction will create a leading global platform with advanced commercial capabilities in Western Europe, which should enable us to access further portfolio opportunities going forward,” Graeme said.
The Boards of Directors from both companies have unanimously approved the agreement. However, the decision must still be approved by Correvio’s shareholders.
Correvio will hold a meeting of shareholders no later than May 20 to gain approval for the transaction.
If the transaction meets all customary closing conditions, the acquisition should be complete during 2020’s second quarter.
Correvio’s share price is currently up 9.52 per cent, trading at $0.46 per share as of 11:31am EST.
ADVANZ PHARMA announced plans last week to delist from the TSX in late March. The company’s share price is down 1.9 per cent, trading at $5.17 per share as of 11:31am EST.