Emergent BioSolutions has agreed to acquire Ireland-based Adapt Pharma for an upfront payment of $635m, followed by up to $100m in potential sales-based milestones through 2022.
According to the deal, the upfront payment comprises $575m in cash and $60m in Emergent common stock, subject to adjustments.
The deal includes the acquisition of Adapt Pharma’s lead product Narcan Nasal Spray, which is a needle-free formulation of naloxone.
It is used for emergency treatment of known or suspected opioid overdose that manifested due to respiratory and/or central nervous system depression.
Emergent BioSolutions CEO Daniel Abdun-Nabi said: “Adding this important life-saving product to our portfolio of preparedness solutions allows us to apply our experience gained from two decades of partnering with the US Government to safeguard public health against biological and chemical threats to address the devastating increase in deaths due to opioid overdoses, one of the most serious public health threats facing the nation today.”
In addition to the nasal spray, Emergent will gain a pipeline of new therapy and delivery options for opioid overdose.
The agreement also covers Adapt Pharma’s 50 employees across the US, Canada and Ireland.
Emergent BioSolutions estimates the deal to achieve an incremental revenue contribution between $200m and $220m next year.
The acquisition of Adapt Pharma is subject to customary closing conditions and regulatory approvals and is scheduled to be completed in the fourth quarter of this year.
Emergent BioSolutions also recently signed an agreement to buy speciality vaccines developer PaxVax for $270m.
These deals are part of the company’s growth plan goal to generate $1bn in revenue by 2020.