Jazz Pharmaceuticals moves to buy EUSA Pharma
Terms include $650 million in cash plus a potential $50 m milestone payment
Jazz Pharmaceuticals has signed an agreement with EUSA Pharma under which Jazz will acquire the privately-held, specialty pharmaceutical company which has headquarters in the US and UK. Jazz will pay US$650 m (€ 491 m) in cash and a potential US$50 m (€38 m) milestone payable in cash based upon its lead product, Erwinaze (asparaginase Erwinia chrysanthemi), achieving a specified US net sales target in 2013.
The transaction would provide Jazz Pharmaceuticals with an expanded portfolio of specialty pharmaceutical products and an enhanced commercial platform, incorporating EUSA Pharma's specialty commercial infrastructure in the US and Europe and its international distribution network.
The combined organisation's portfolio would have products marketed in the US and Europe, including Erwinaze, a life-saving treatment for patients with acute lymphoblastic leukemia (ALL).
‘EUSA Pharma is a compelling strategic fit with our specialty focus and commercial expertise, and furthers our mission to improve patients' lives by delivering therapies that address serious unmet medical needs,’ said Bruce Cozadd, chairman and ceo of Jazz Pharmaceuticals. ‘This transaction would expand our global footprint and marketed product portfolio to include Erwinaze, a treatment for a life-threatening form of leukemia, as well as other highly specialized products. Our organizations are highly complementary, and we look forward to working with our new colleagues to build an even stronger rapidly-growing company.’
Bryan Morton, founder, president and ceo of EUSA Pharma said there was a strong fit between the two companies and that as a larger and stronger combined organisation, it would have greater resources to continue growth toward becoming a leader in the specialty pharmaceutical sector.
EUSA Pharma was founded in 2006, with a portfolio of 10 oncology, critical-care and oncology supportive care products currently marketed directly in the US and Europe and via distributors in other countries. The company's first quarter 2012 net sales were approximately US$46 m.
It has approximately 180 employees, with operations in the US (Langhorne, PA) and Europe (including offices in Oxford, UK and Lyon, France). Morton, would remain with the organisation with responsibility for the new international operations.
The closing of the transaction is anticipated to occur in June 2012.
