Horizon Pharma has reached an agreement to sell a European subsidiary that owns the marketing rights to Procysbi (cysteamine bitartrate) delayed-release capsules and Quinsair (levofloxacin inhalation solution) in Europe, the Middle East and Africa (EMEA) regions to Chiesi Farmaceutici for an upfront payment of $70 million, with additional potential milestone payments based on sales targets.
The transaction is subject to receipt of antitrust approvals and other customary closing conditions and is expected to close by the end of the second quarter, the company said in its press release.
Horizon also said that it will maintain control of manufacturing supply in the EMEA regions through its third party supplier. In addition, Horizon will maintain marketing rights for Procysbi and Quinsair in the United States, Canada and Latin America. The divested subsidiary has facilities in the Netherlands, France and Germany and has approximately 40 employees.
“Following the Raptor acquisition at the end of last year, we completed an evaluation of the commercial infrastructure required to provide Procysbi and Quinsair in Europe, the Middle East and Africa, and determined that these medicines would be best supported by a company with a larger geographic footprint,” said Timothy P. Walbert, chairman, president and chief executive officer, Horizon Pharma plc. “We will continue to provide Ravicti and Buphenyl in Europe and other non-U.S. markets through our commercial partnership strategy.”
“The acquisition of the marketing rights for Procysbi and Quinsair will further strengthen our rare disease offering in the EMEA regions,” said Ugo Di Francesco, CEO of Chiesi Farmaceutici S.p.A. “We have a strong commitment to the rare disease area and this is an important opportunity to enhance our portfolio and contribute to improve the quality of life of nephropathic cystinosis and cystic fibrosis patients.”
Assuming a second-quarter 2017 transaction close, Horizon said that it anticipates a reduction of approximately $15 million in full-year 2017 net sales related to Procysbi and Quinsair in the EMEA regions and a neutral impact on its full-year 2017 adjusted EBITDA. This would result in a full-year 2017 net sales guidance range of $985 million to $1.020 billion and no change to Horizon’s full-year 2017 adjusted EBITDA guidance range of $315 million to $350 million.