Horizon Pharma buys Irish drug maker Vidara
Illinois-based Horizon Pharma Inc. announced last week it is taking over Irish Vidara Therapeutics International Ltd. in a reverse merger, moving its headquarters to Dublin. The deal is worth approximately $660 million and the new entity will operate under the name Horizon Pharma plc. The new company will focus on the production of four main products, primarily intended for the U.S. market.
Vidara's drug Actimmune, which treats severe, malignant osteopetrosis and chronic granulomatous disease, is to be the central product for the new company. In 2013 the drug generated $58.9 million in sales, entirely on the U.S. market. Actimmune will be joined by Horizon's three products that treat different forms of arthritis.
The deal has been unanimously approved by both companies' boards of directors. After the merger, shareholders of Vidara will own approximately 26 percent of Horizon Pharma plc and will receive $200 million in cash, Horizon announced in a statement. The remaining 74 percent of Horizon Pharma plc will be owned by stockholders of Horizon Pharma, Inc.
Horizon estimated that the deal would bring its projected 2014 revenue of $250 million to $265 million, with earnings before interest, taxes, depreciation and amortization estimated to reach $75 million. In 2013 Horizon reported net revenue of $74 million, up from $18.8 million in 2012.