Horizon Pharma agrees to buy rare-disease firm Raptor for $800m

11 September 2016 (Last Updated September 11th, 2016 18:30)

Ireland-based Horizon Pharma has entered into a definitive agreement to acquire rare-disease company Raptor Pharmaceutical for approximately $800m.

Ireland-based Horizon Pharma has entered into a definitive agreement to acquire rare-disease company Raptor Pharmaceutical for approximately $800m.

Under the transaction, Horizon will pay $9 per share in cash for all of the issued and outstanding shares of Raptor.

The company intends to finance the transaction through $675m of external debt along with cash on hand.

Horizon Pharma chairman, president and chief executive officer Timothy P. Walbert said: "The proposed acquisition of Raptor furthers our commitment to helping people with rare diseases and is a significant step in advancing our strategy to expand our rare disease business.

"We look forward to working with new patient communities and building on the success of the Raptor team."

"Along with the potential for accelerated revenue growth, the addition of Raptor strengthens our US orphan business and provides a platform to expand our orphan business in Europe and other key international markets.

"We look forward to working with new patient communities and building on the success of the Raptor team."

The acquisition is expected to strengthen Horizon's focus on rare diseases and provides expansion into Europe and other international markets.

The transaction is subject to the satisfaction of customary closing conditions and regulatory approvals, including antitrust approval in the US, and is expected to close in the fourth quarter of this year.

Earlier this year, Horizon acquired Crealta Holdings for $510m.

Raptor has previously disclosed that it expects the total net sales guidance for the full year of 2016 to be $125m to $135m, including both procysbi and quinsair.

The company’s procysbi is the first cystine-depleting agent approved in the US for the treatment of nephropathic cystinosis (NC), a rare metabolic disorder.

Quinsair is approved in Europe and Canada for the treatment of chronic pulmonary infections due to Pseudomonas aeruginosa in adults with cystic fibrosis.

BofA Merrill Lynch, J.P. Morgan, Jefferies LLC and Cowen and Company, LLC are financial advisors to Horizon Pharma, while Centerview Partners LLC and Leerink Partners LLC are financial advisors to Raptor.