Healthcare Firm Pays $200M for Irritable Bowel Syndrome Drug
Concordia Healthcare Corp. will acquire Donnatal, an adjunctive therapy in the treatment of irritable bowel syndrome and acute enterocolitis, from a privately held specialty pharmaceutical company carrying on business as Revive Pharmaceuticals.
“The acquisition of Donnatal represents an important advancement in the execution of Concordia’s legacy product strategy, providing substantial and sustainable revenue going forward,” says Mark Thompson, CEO of Concordia.
Donnatal comes in two formulations: immediate release Donnatal Tablets, and immediate release Donnatal Elixir, a fast acting liquid. In addition to the drug, Concordia is acquiring the sales and marketing infrastructure related to the product.
The International Foundation for Functional Gastrointestinal Disorders reports that irritable bowel syndrome affects between 25 and 45 million people in the United States (10 to 15 percent of the population) with a greater incidence in women. According to the National Institutes of Health, as many as 30 percent of Americans suffer from IBS at some time in their lives. It is not associated with hospitalization and surgery, but it can severely compromise a person’s quality of life.
IBS is second only to the common cold as a cause of absenteeism from work. IBS is one of the top 10 reasons for physician visits and the second most frequently encountered diagnosis in clinical practice, accounting for more physician visits than any symptoms other than those for respiratory tract infections.
Concordia will acquire Donnatal for $200 million in cash and an aggregate of 4,605,833 common shares of Concordia. The common shares issuable have an aggregate value of approximately $65.3 million based on the closing trading price of Concordia common shares on the Toronto Stock Exchange on March 18, 2014. Management anticipates that the deal will close in the second quarter of 2014.
Charlottesville, Va.-based Revive Pharmaceuticals is a privately held specialty pharma company that specializes in selling, distributing, marketing and manufacturing Rx products that help improve patients’ health and quality of life.
Concordia is a healthcare company focused on legacy pharmaceutical products, orphan drugs, and medical devices for the diabetic population. The company operates out of facilities in Oakville, Ontario; Lenexa, Kan.; Bannockburn, Ill; and Bridgetown, Barbados.
Release Date: March 20, 2014
Source: Concordia Healthcare