Horizon Pharma to buy Ireland’s Vidara Therapeutics for $660 mn

Horizon Pharma Inc today said that it would buy Dublin-based privately held specialty pharmaceutical company Vidara Therapeutics International Ltd through a reverse merger in a stock-and-cash deal valued at about $660 million.

The merged company will be named Horizon Pharma Plc and will be organised under the laws of Ireland.

Under the terms of the deal agreed by the boards of both companies, Horizon shareholders will own 74 per cent of the merged company, while Vidara's shareholders will own about 26 per cent and receive $200 million in cash.

Certain affiliates of Horizon Pharma, who hold approximately 20 per cent stake, have agreed to vote in favor of the deal, while shareholders holding 95 per cent of the shares of Vidara have agreed to vote in favor of the transaction.

Vidara Therapeutics is a specialty pharmaceutical company with operations in Dublin, Ireland and the US.

The company markets Actimmune, a bioengineered form of interferon gamma-1b, a protein that acts as a biologic response modifier. The drug has been approved by the US Food and Drug Administration (FDA) for use in children and adults with chronic granulomatous disease (CGD) and severe, malignant osteopetrosis (SMO).

Actimmune is indicated for reducing the frequency and severity of serious infections associated with CGD and for delaying time to disease progression in patients with SMO.

Actimmune generated sales of $58.9 million in 2013.

Illinois-based Horizon Pharma is a commercial stage specialty pharmaceutical company that markets Duexis, Vimovo and Rayos/Lodotra, which target unmet therapeutic needs in arthritis, pain and inflammatory diseases.

The company's strategy is to develop, acquire or in-license additional innovative medicines where it can execute a targeted commercial approach among specific target physicians such as primary care physicians, orthopedic surgeons and rheumatologists, while taking advantage of its commercial strengths and the infrastructure the company has put in place.

"The addition of Actimmune complements our commercial business model focused on targeted promotion to primary care physicians and specialists," said Timothy Walbert, chairman, president and CEO of Horizon Pharma.

"The combined company would have a portfolio of four proprietary products and an international platform that builds on our strategy of organic growth and acquisitions," he added.

The transaction is expected to close mid-year 2014.