Emergent BioSolutions announces agreement to acquire Cangene
Emergent will acquire all the outstanding shares of Cangene in an all-cash transaction for an aggregate purchase price of $222 million. The companies anticipate they will complete the transaction in 2014's first quarter.
Cangene has three specialty products included in the U.S. Strategic National Stockpile, including anthrax immune globulin intravenous, vaccinia immune globulin intravenous (human), and botulism antitoxin (equine) heptavalent.
"This transaction represents an exciting and very promising opportunity for Cangene and delivers significant value to our shareholders," John Sedor, the president and CEO of Cangene Corporation, said. "Cangene has a history of success in medical countermeasures while building a growing, profitable product portfolio supported by a strong, focused commercial platform and an established contract manufacturing operation. Our diversified business across biodefense, specialty pharmaceuticals and contract manufacturing is strategically consistent with Emergent's infrastructure and vision for the future."
Emergent said the acquisition is consistent with the company's growth plan in that it adds commercial product sales, diversifies the company's revenue mix and contributes to earnings growth.
"The addition of Cangene is expected to accelerate our growth driven by a substantially expanded biodefense franchise, a portfolio of approved specialty therapeutics sold through an established commercial infrastructure, and fill/finish manufacturing capabilities with growing contract revenues," Daniel Abdun-Nabi, the president and CEO of Emergent, said. "The combined company presents a clearly attractive financial profile with pro forma total revenues of over $430 million and pre-tax operating income of approximately $55 million. This acquisition represents an important step in advancing Emergent's leadership in specialty pharmaceuticals and positions us to drive significant growth in shareholder value."