Concordia Agrees to Acquire Covis Assets for $1.2 Bn
The specialty pharmaceutical company, Concordia Healthcare Corporation, has agreed to acquire substantially all of the commercial assets of privately held Covis Pharma S.Ã .r.l and Covis Injectables, S.Ã .r.l for $1.2 billion in cash. Covis is a provider of branded and authorized generic products. Covis Pharma S.Ã .r.l. and Covis Injectables S.Ã r.l. are subsidiaries of Covis Pharma Holdings S.Ã r.l., which is headquartered in Zug, Switzerland.
The Covis drug portfolio being acquired consists of 18 branded and authorized generic products and injectables. Key products are Nilandron (nilutamide), for treating metastatic prostate cancer; Dibenzyline (phenoxybenzamine) for treating pheochromocytoma; Lanoxin (digoxin) for treating mild-to-moderate heart failure and atrial fibrillation; and Plaquenil (hydroxychloroquine) for treating lupus and rheumatoid arthritis.
Concordia is focused on legacy pharmaceutical products, orphan drugs, and medical devices for the diabetic population. Concordia's legacy pharmaceutical division, Concordia Pharmaceuticals Inc., consists of the following products: ADHD-treatment Kapvay (clonidine extended-release tablets), head-lice treatment Ulesfia (benzyl alcohol) Lotion, asthma-related medication Orapred ODT (prednisolone sodium phosphate orally disintegrating tablets), irritable bowel syndrome treatment Donnatal (belladonna alkaloids, phenobarbital), and Zonegran (zonisamide) for treatment of partial seizures in adults with epilepsy. Concordia's specialty healthcare distribution division, Complete Medical Homecare, distributes medical supplies targeting diabetes and related conditions. Concordia's orphan drugs division, Concordia Laboratories Inc., manufactures Photofrin, which is marketed by Pinnacle Biologics, Inc. in the United States. Concordia operates facilities in Oakville, Ontario; Bridgetown, Barbados; Kansas City, Missouri; Chicago, Illinois and Charlottesville, Virginia.
The board of directors of both companies have approved the acquisition The deal is expected to close in the second quarter of 2015.
following the close of the deal, Concordia expects to recognize immediate synergies of approximately $20 million relating to the elimination of redundant distribution and general and administrative expenses.
Source: Concordia Healthcare
