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Impax Laboratories and Amneal Pharmaceuticals Agree to Merge
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Impax Laboratories, Inc. and privately held generic drug maker, Amneal Pharmaceuticals LLC announced that they have entered into an all stock deal to merge and form a new publicly traded company-Amneal Pharmaceuticals Inc.
Pursuant to the deal, Impax and Amneal shareholders will own about 25% and 75% of the new company's pro forma shares, respectively. Markedly, the combined company will rank as the fifth largest in the United States by gross revenue.
So far this year, Impax’s shares have outperformed the industry. The stock has increased 45.7%, as against the industry’s decline of 23.4%.
Furthermore, the combined company will have a diverse pipeline with more than 300 products either filed with the FDA or in active stages of development. The deal, which is expected to close in the first half of 2018, would add to Impax’s standalone adjusted earnings in the first 12 months and generate double-digit revenues and earnings growth in the next three years. Impax expects to achieve annual cost synergies of about $200 million within three years. The expected cash flows from the combined company will also enable Impax to repay its debt and meaningfully invest in its business.
Additionally, the merger will help Amneal to achieve its long-term goals of providing greater access to safe and affordable medicine for people around the world.
In fact, the combined company will drive growth in a number of ways. It will have a generics portfolio with about 165 differentiated product families marketed in all dosage forms.
Going forward, the combined company is anticipated to manufacture and distribute its products from a strengthened global supply chain supporting capabilities across all dosage forms, with R&D and manufacturing sites in the United States, India and Ireland.
The new company is also expected to generate annual double-digit growth in net revenue, adjusted earnings before interest, tax, depreciation and amortization (EBITDA) and adjusted EPS over the three years following the close of the transaction. In fact, the deal is anticipated to generate $200 million in annual cost savings within three years following the close of the transaction. These savings are incremental to the previously announced Impax standalone cost savings initiatives.
The combined company is expected to have 2017 pro forma net revenue in the range of $1.75 billion to $1.85 billion.
Impax Laboratories sports a Zacks Rank #1 (Strong Buy). Other top-ranked stocks in health care sector include Ligand Pharmaceuticals Incorporated (LGND - Free Report) , Adaptimmune Therapeutics plc , and Novo Nordisk A/S (NVO - Free Report) . While Ligand holds a Zacks Rank#1, Adaptimmune and Novo Nordisk carry a Zacks Rank #2 (Buy).You can see the complete list of today’s Zacks #1 Rank stocks here.
Ligand’s earnings per share estimates have moved up $3.68 to $3.70 for 2018 over the last 30 days. The company pulled off positive earnings surprises in two of the trailing four quarters, with an average beat of 6.19%. The share price of the company has increased 39.9% year to date.
Adaptimmune’s loss per share estimates have narrowed from $1.07 to 95 cents for 2017 and from $1 to 90 cents for 2018 over the last 60 days. The company delivered positive earnings surprises in three of the trailing four quarters, with an average beat of 2.56%. The share price of the company has increased 73.1% year to date.
Novo Nordisk’s earnings per share estimates have moved up $2.37 to $2.38 for 2017 and from $2.51 to $2.53 for 2018 over the last 60 days. The company came up with positive earnings surprises in three of the trailing four quarters, with an average beat of 3.63%. The share price of the company has increased 37.5% year to date.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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Impax Laboratories and Amneal Pharmaceuticals Agree to Merge
Impax Laboratories, Inc. and privately held generic drug maker, Amneal Pharmaceuticals LLC announced that they have entered into an all stock deal to merge and form a new publicly traded company-Amneal Pharmaceuticals Inc.
Pursuant to the deal, Impax and Amneal shareholders will own about 25% and 75% of the new company's pro forma shares, respectively. Markedly, the combined company will rank as the fifth largest in the United States by gross revenue.
So far this year, Impax’s shares have outperformed the industry. The stock has increased 45.7%, as against the industry’s decline of 23.4%.
Furthermore, the combined company will have a diverse pipeline with more than 300 products either filed with the FDA or in active stages of development. The deal, which is expected to close in the first half of 2018, would add to Impax’s standalone adjusted earnings in the first 12 months and generate double-digit revenues and earnings growth in the next three years. Impax expects to achieve annual cost synergies of about $200 million within three years. The expected cash flows from the combined company will also enable Impax to repay its debt and meaningfully invest in its business.
Additionally, the merger will help Amneal to achieve its long-term goals of providing greater access to safe and affordable medicine for people around the world.
In fact, the combined company will drive growth in a number of ways. It will have a generics portfolio with about 165 differentiated product families marketed in all dosage forms.
Going forward, the combined company is anticipated to manufacture and distribute its products from a strengthened global supply chain supporting capabilities across all dosage forms, with R&D and manufacturing sites in the United States, India and Ireland.
The new company is also expected to generate annual double-digit growth in net revenue, adjusted earnings before interest, tax, depreciation and amortization (EBITDA) and adjusted EPS over the three years following the close of the transaction. In fact, the deal is anticipated to generate $200 million in annual cost savings within three years following the close of the transaction. These savings are incremental to the previously announced Impax standalone cost savings initiatives.
The combined company is expected to have 2017 pro forma net revenue in the range of $1.75 billion to $1.85 billion.
Impax Laboratories, Inc. Price
Impax Laboratories, Inc. Price | Impax Laboratories, Inc. Quote
Zacks Rank & Other Stocks to Consider
Impax Laboratories sports a Zacks Rank #1 (Strong Buy). Other top-ranked stocks in health care sector include Ligand Pharmaceuticals Incorporated (LGND - Free Report) , Adaptimmune Therapeutics plc , and Novo Nordisk A/S (NVO - Free Report) . While Ligand holds a Zacks Rank#1, Adaptimmune and Novo Nordisk carry a Zacks Rank #2 (Buy).You can see the complete list of today’s Zacks #1 Rank stocks here.
Ligand’s earnings per share estimates have moved up $3.68 to $3.70 for 2018 over the last 30 days. The company pulled off positive earnings surprises in two of the trailing four quarters, with an average beat of 6.19%. The share price of the company has increased 39.9% year to date.
Adaptimmune’s loss per share estimates have narrowed from $1.07 to 95 cents for 2017 and from $1 to 90 cents for 2018 over the last 60 days. The company delivered positive earnings surprises in three of the trailing four quarters, with an average beat of 2.56%. The share price of the company has increased 73.1% year to date.
Novo Nordisk’s earnings per share estimates have moved up $2.37 to $2.38 for 2017 and from $2.51 to $2.53 for 2018 over the last 60 days. The company came up with positive earnings surprises in three of the trailing four quarters, with an average beat of 3.63%. The share price of the company has increased 37.5% year to date.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>