Dublin based Horizon to buy Raptor for $800m
Deal will bolster pharma company’s rare-disease treatment business
As part of the deal, Horizon gains Procysbi, a treatment for nephropathic cystinosis, a rare metabolic disorder, as well as Quinsair, which is given to cystic fibrosis patients. Photograph: Kiyoshi Ota/Bloomberg
Horizon Pharma has agreed to buy Raptor Pharmaceutical for about $800 million to bolster its rare-disease treatment business and expand internationally.
Horizon will pay $9 a share in cash, about 21 per cent more than Raptor’s closing price on Friday of $7.45, the companies said Monday in a statement. The transaction is expected to close in the fourth quarter of 2016, and should add to earnings next year, they said.
As part of the deal, Horizon gains Procysbi, a treatment for nephropathic cystinosis, a rare metabolic disorder, as well as Quinsair, which is given to cystic fibrosis patients. Raptor’s previously disclosed total net sales guidance for full-year 2016 is $125 million to $135 million, which includes both Procysbi and Quinsair. Novato, California-based Raptor gained 20 per cent to $8.94 at 9.01am in early trading in New York. The stock had advanced 43 per cent this year through Friday.
Horizon, which is domiciled in Dublin, Ireland, with corporate offices in Lake Forest, Illinois, was little changed.
Horizon will fund the purchase through $675 million of debt along with cash on hand, according to the statement. MTS Health Partners LP and Citigroup were Horizon Pharma’s main advisers on the transaction.
Horizon Pharma’s legal advisers were Cooley and McCann FitzGerald.