Jazz Pharmaceuticals has announced a deal to acquire the cancer drug manufacturer EUSA in a deal that could rise to $700m.

Jazz will pay $650m up front for the company, with an extra $50m should EUSA’s leukaemia drug Erwinaze reach a US sales target in 2013.

Erwinaze, intended for the treatment of acute lymphoblastic leukaemia, received US Food and Drug Administration in November 2011. It has orphan drug status in the US until November 2018, and marketing exclusivity until 2023.

Jazz plans to fund the acquisition with a $500m term loan and a $100m revolving credit facility, with the deal expected to close in June should it receive approval by antitrust regulators.

EUSA recorded $46m in revenue in Q1 2012, and Jazz expects the purchase to add 75c to 85c per share to its adjusted 2013 profit, as well an extra $210m to $230m in revenue.

Jazz Pharmaceuticals chairman and CEO Bruce Cozadd said that EUSA is a compelling strategic fit for the company, and adds to Jazz’s specialty focus and commercial expertise.

"This transaction would expand our global footprint and marketed product portfolio to include Erwinaze, a treatment for a life-threatening form of leukemia, as well as other highly specialised products. Our organisations are highly complementary, and we look forward to working with our new colleagues to build an even stronger rapidly-growing company," added Cozadd.