Biopharmaceutical company Jazz Pharmaceuticals has completed its $680m acquisition of specialty pharmaceutical firm EUSA Pharma.
The $680m fee represents a base price of $650m and approximately $30m of adjustments for EUSA's working capital, cash and liabilities, with a further $50m milestone payment based upon the commercial success of Erwinaze.
Acute lymphoblastic leukaemia drug, Erwinaze, received US Food and Drug Administration approval in November 2011 and the milestone payment is dependent upon the drug achieving an undisclosed net sales target in 2013.
Bruce Cozadd, Jazz Pharmaceuticals chairman and CEO, welcomed the acquisition, stating that the transaction would grow the company's portfolio of speciality therapies that address significant medical needs.
"The addition of EUSA Pharma as our new international business, also expands our global footprint and brings additional marketed products and development opportunities to the company," added Cozadd.
The transaction was financed through cash-in-hand and proceeds from a six-year $475m term loan, while Jazz has also arranged for a $100m revolving credit facility with a five year term.
EUSA Pharma's business outside of the US will retain its existing name and the responsibility for marketing a portfolio of products outside of the US. The acquisition is expected to be accretive to Jazz's earnings in 2012, adding expected incremental revenue of between $90m and $100m.