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Emergent Completes Acquisition of Narcan Maker Adapt Pharma
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Emergent BioSolutions Inc. (EBS - Free Report) announced that it has closed the acquisition of privately held Adapt Pharma, which will add the latter’s Narcan (naloxone hydrochloride) nasal spray to its portfolio, thereby expanding the company’s presence in the public health threats market.
Total purchase consideration is up to $735 million, which includes an upfront payment of $635 million in cash and Emergent’s common stock plus potential milestones of up to $100 million valid through 2022.
Emergent will report the effects of this transaction concurrently with its third-quarter financial results, scheduled for Nov 1.
Shares of Emergent have surged 30.1% year to date against the industry’s decrease of 14.5%.
Narcan is the only FDA approved needle-free emergency treatment of known or suspected opioid overdose. The nasal spray hit the United States market in early 2016 after getting the regulatory body’s nod in November 2015. It was also approved in Canada during October 2016.
With this buyout, Emergent aims at boosting and diversifying its product development, adding Adapt Pharma’s pipeline to its portfolio for addressing the opioid overdose treatment by shifting about 50 employees to the United States, Canada and Ireland. The pharma company also plans to spread awareness of this easy-to-administer life-saving therapy.
Earlier this month, Emergent completed the consolidation of PaxVax for an all-cash consideration of $270 million with a combination of cash in hand and borrowings under its existing credit facility. PaxVax, a specialty vaccine company, is focused on developing vaccines against the existing and emerging infectious diseases.
Upon closing, Emergent acquired two marketed vaccines, namely Vivotif (Typhoid Vaccine Live Oral Ty21a), the only oral vaccine licensed by the FDA for preventing typhoid fever, and Vaxchora (Cholera Vaccine, Live, Oral), the only FDA-licensed vaccine for the prevention of cholera.
We like to remind investors that Emergent’s growth is heavily dependent on its anthrax vaccine BioThrax. The vaccine recorded sales of $77.6 million in the second quarter of 2018. Apart from BioThrax, Emergent markets smallpox vaccine ACAM2000 and anthrax monoclonal antibody raxibacumab. Both, were acquired during the fourth quarter of 2017 from Sanofi (SNY - Free Report) and GlaxoSmithKline (GSK - Free Report) , respectively.
Genmab’s earnings estimates have moved 1.8% north for 2018 and 11.8% for 2019 over the past 60 days.
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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Emergent Completes Acquisition of Narcan Maker Adapt Pharma
Emergent BioSolutions Inc. (EBS - Free Report) announced that it has closed the acquisition of privately held Adapt Pharma, which will add the latter’s Narcan (naloxone hydrochloride) nasal spray to its portfolio, thereby expanding the company’s presence in the public health threats market.
Total purchase consideration is up to $735 million, which includes an upfront payment of $635 million in cash and Emergent’s common stock plus potential milestones of up to $100 million valid through 2022.
Emergent will report the effects of this transaction concurrently with its third-quarter financial results, scheduled for Nov 1.
Shares of Emergent have surged 30.1% year to date against the industry’s decrease of 14.5%.
Narcan is the only FDA approved needle-free emergency treatment of known or suspected opioid overdose. The nasal spray hit the United States market in early 2016 after getting the regulatory body’s nod in November 2015. It was also approved in Canada during October 2016.
With this buyout, Emergent aims at boosting and diversifying its product development, adding Adapt Pharma’s pipeline to its portfolio for addressing the opioid overdose treatment by shifting about 50 employees to the United States, Canada and Ireland. The pharma company also plans to spread awareness of this easy-to-administer life-saving therapy.
Earlier this month, Emergent completed the consolidation of PaxVax for an all-cash consideration of $270 million with a combination of cash in hand and borrowings under its existing credit facility. PaxVax, a specialty vaccine company, is focused on developing vaccines against the existing and emerging infectious diseases.
Upon closing, Emergent acquired two marketed vaccines, namely Vivotif (Typhoid Vaccine Live Oral Ty21a), the only oral vaccine licensed by the FDA for preventing typhoid fever, and Vaxchora (Cholera Vaccine, Live, Oral), the only FDA-licensed vaccine for the prevention of cholera.
We like to remind investors that Emergent’s growth is heavily dependent on its anthrax vaccine BioThrax. The vaccine recorded sales of $77.6 million in the second quarter of 2018. Apart from BioThrax, Emergent markets smallpox vaccine ACAM2000 and anthrax monoclonal antibody raxibacumab. Both, were acquired during the fourth quarter of 2017 from Sanofi (SNY - Free Report) and GlaxoSmithKline (GSK - Free Report) , respectively.
Emergent currently carries a Zacks Rank #2 (Buy). Another top-ranked stock in the healthcare sector is Genmab A/S (GNMSF - Free Report) , which sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Genmab’s earnings estimates have moved 1.8% north for 2018 and 11.8% for 2019 over the past 60 days.
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 >>