Horizon buys Crealta Holdings for $510M

Horizon Pharma plc has entered a definitive agreement to acquire Crealta Holdings LLC for $510 million in cash.

Horizon on Monday said that it expected the transaction to add $70 to $80 million in net sales and $45 to $50 million in adjusted EBITDA in the first twelve months following closing.

“The Crealta acquisition further diversifies our portfolio of medicines and aligns with our focus of acquiring value-enhancing, clinically differentiated, long-life medicines that treat orphan diseases,” said Timothy P. Walbert, chairman, president and chief executive officer, Horizon Pharma plc.

“We have a proven track record of strong commercial execution and the ability to generate volume growth for clinically differentiated medicines. With our experienced rheumatology sales force and orphan expertise, we expect to expand the number of patients identified and treated with Krystexxa. As with all of our orphan medicines, we plan to maximize additional development opportunities of Krystexxa.”

Horizon notes that Krystexxa is the first and only FDA-approved medicine for chronic refractory gout, which is an orphan disease and a type of arthritis that occurs when uric acid build up in the blood remains high and inflammation persists even after treatment with conventional therapies.

The company pointed out that, according to estimates, chronic refractory gout impacts approximately 50,000 people in the United States. Since its FDA approval in 2010, between 4,000 and 5,000 patients have been treated with KRYSTEXXA, Horizon concluded.