- Provides ADVANZ PHARMA with an immediate and direct commercial presence in Germany, France, Spain, Italy, and the Benelux region, while strengthening its existing presence in the Nordics and the United Kingdom
- Further diversifies ADVANZ PHARMA's portfolio of medicines by adding established and innovative high-quality brands that are sold in more than 60 countries around the world
- Accelerates ADVANZ PHARMA's positioning as a leading Western European platform for niche established medicines with enhanced organic and inorganic growth opportunities
- The acquisition is expected to have a total purchase price of approximately $76 million1 including the repayment of certain Correvio indebtedness; ADVANZ PHARMA intends to pay for the acquisition with cash on hand
ADVANZ PHARMA Corp. Limited (“ADVANZ PHARMA” or “the Company”) (TSX:ADVZ), a global pharmaceutical company focused on serving the needs of patients and healthcare providers around the world with enhanced access to high quality, niche-established medicines, today announced that through its wholly-owned subsidiary, the Company has entered into an arrangement agreement dated March 15, 2020, (the “Arrangement Agreement”) to acquire all of the issued and outstanding shares of specialty pharmaceutical company Correvio Pharma Corp. (“Correvio”) (NASDAQ: CORV) (TSX: CORV).
The acquisition is expected to have a total purchase price of approximately $76 million1, which includes the repayment of certain Correvio indebtedness, pursuant to a plan of arrangement (“Plan of Arrangement”) under the Canada Business Corporations Act.
Correvio is a Vancouver, Canada-based specialty pharmaceutical company focused on providing innovative, high-quality brands that meet the needs of acute care physicians and patients. Correvio’s commercial presence is focused on major European markets with a broader distribution network covering more than 60 countries worldwide. For the nine months ending September 30, 2019, Correvio generated revenue of approximately $21 million.
“The acquisition of Correvio is an important step for ADVANZ PHARMA and is directly aligned with our P.L.A.N growth strategy,” said Graeme Duncan, Chief Executive Officer of ADVANZ PHARMA. “Correvio’s highly experienced European commercial team provides us with a direct commercial presence in France, Germany, Spain, Italy and the Benelux region, while further strengthening our existing presence in the Nordics and the United Kingdom.”
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Mr. Duncan continued, “Correvio’s niche portfolio, consisting of an established brand, and two growing, patent-protected brands, plus a pipeline of potential product launches, are highly complementary to our current priorities and future focus. This is a transformative transaction that we are very excited about, creating what we believe is a leading global platform with advanced commercial capabilities in Western Europe. This transaction should also enable us to access additional portfolio opportunities going forward, and optimise the launches of our pipeline products.”
Mark H.N. Corrigan, MD, Chief Executive Officer of Correvio, commented: “Since announcing our intent to explore strategic alternatives in December 2019, we have diligently evaluated a number of opportunities and concluded that a partnership with ADVANZ PHARMA represents the best outcome for our stakeholders and employees. We believe that bringing the highly skilled and talented employees from the two organizations together will deliver increased scale, depth of commercial capability, breadth of geographical reach and complementary business models to bring important medicines to patients across the globe.”
ADVANZ PHARMA believes Correvio’s business will be profitable on a pro-forma basis in 2020 through a combination of top line growth and the realisation of synergies.
The Company intends to pay for the acquisition of Correvio with its cash on hand. As of September 30, 2019, ADVANZ PHARMA’s cash position was approximately $243 million.
Overview of Correvio’s Portfolio of Medicines
Correvio has two marketed, in-hospital, cardiology products: BRINAVESS® (vernakalant HCl, IV), approved in Europe and other territories for the rapid conversion of recent onset atrial fibrillation to sinus rhythm in adults; and AGGRASTAT® (tirofiban HCl), a reversible GP IIb/IIIa inhibitor indicated for use in patients with acute coronary syndrome.
Correvio’s licensed medicines include XYDALBA™ (dalbavancin hydrochloride), a second generation, semi-synthetic lipoglycopeptide approved in the European Union for the treatment of acute bacterial skin and skin structure infections (ABSSSI) in adults; and ZEVTERA®/MABELIO® (ceftobiprole medocaril), a semi-synthetic, pro-drug form of a cephalosporin antibiotic for the treatment of community acquired pneumonia and hospital acquired pneumonia, excluding ventilator acquired pneumonia, in adults for select European markets and Israel.
Correvio’s pipeline of product candidates includes TREVYENT®, a drug/device combination that is designed to deliver treprostinil, a leading treatment for pulmonary arterial hypertension.
Source: BioSpace
