Canada-based Concordia Healthcare has signed an agreement to acquire commercial assets of Covis Pharma and Covis Injectables for around $1.2bn in cash.
As part of the deal, Concordia will acquire Covis drug portfolio, including 18 branded and authorised generic products.
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Concordia Healthcare CEO Mark Thompson said: "Covis’s strong commercial momentum will have an immediate and material impact on our top and bottom line financial results.
"In the longer-term, this transaction creates greater scale and diversification for Concordia, which should support the continued execution of our aggressive growth plans."
The drug portfolio being acquired comprises branded pharmaceuticals, injectables and authorised generics for medical conditions in various therapeutic areas such as cardiovascular, central nervous system, oncology and acute care markets.
The portfolio includes products such as Nilandron to treat metastatic prostate cancer, Dibenzyline to treat pheochromocytoma and Lanoxin for the treatment of mild-to-moderate heart failure and atrial fibrillation, as well as Plaquenil to treat lupus and rheumatoid arthritis.
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By GlobalDataCovis is said to have revenue between $47m and $52m related to the portfolio, in its fourth quarter of 2014, while overall revenue for the same year is between $140m and $145m.
Concordia will incorporate the acquired business into its existing business and is expecting to recognise immediate synergies of about $20m.
Subject to satisfaction of customary closing conditions, the deal is expected to be completed in the second quarter of 2015.
Concordia develops pharmaceutical products, orphan drugs, and medical devices for the diabetic patients.
