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Emergent BioSolutions is set to acquire Adapt Pharma, a pharmaceutical company focused on addressing the opioid overdose and addiction crisis, in a deal worth up to $735 million.
Emergent BioSolutions has entered into an agreement to acquire Adapt Pharma, a pharmaceutical company focused on addressing the opioid overdose and addiction crisis, and its leading product Narcan (naloxone HCl) Nasal Spray in a deal worth up to $735 million, the companies announced on Aug. 28, 2018.
The transaction price includes an upfront payment of $635 million and up to $100 million in cash for potential sales-based milestones through 2022. The upfront payment of $635 million consists of $575 million in cash and $60 million in Emergent common stock, all of which are subject to certain adjustments under the terms of the agreement.
Upon the closing of the transaction, Emergent will acquire Adapt’s naloxone HCl product and a development pipeline of new treatment and delivery options to address opioid overdose, and bring on approximately 50 employees, located in the United States, Canada, and Ireland, including those responsible for supply chain management, research and development, government affairs, and commercial operations.
Narcan is a needle-free formulation of naloxone, approved by FDA and Health Canada, for the emergency treatment of known or suspected opioid overdose as manifested by respiratory and/or central nervous system depression.
Emergent expects that with the completion of this acquisition and the recently announced acquisition of PaxVax in August 2018, it will achieve or exceed its growth plan goal of $1 billion in revenue in 2020.
“With a shared mission of protecting lives from public health threats, I am confident that our combined expertise and resources will accelerate access to Narcan Nasal Spray through investments in public awareness and manufacturing capacity while maintaining a responsible pricing approach,” said Seamus Mulligan, chairman and chief executive officer of Adapt, in a company press release. “It will also allow us to progress Adapt’s R&D pipeline of additional opioid overdose and addiction treatment options. To maintain the outstanding momentum our team has generated, Adapt will continue to focus on the opioid crisis as part of Emergent’s devices business unit and all employees and facilities will be retained.”
“The US government has declared the opioid crisis a public health emergency and has identified the availability and distribution of overdose-reversing drugs, such as Narcan Nasal Spray, as one of the strategies to combat this crisis,” said Doug White, senior vice-president and head of Emergent’s devices business unit, in the release. “We are committed to further expanding awareness and availability of Narcan Nasal Spray as a convenient, easy-to-administer emergency treatment by leveraging the combination of Adapt Pharma’s efforts with state and local governments, first responders, pharmacies, and other channels, with Emergent’s 20-year track record as a trusted partner to the Federal government.”
Source: Emergent BioSolutions