Questcor Pharmaceuticals to acquire BioVectra
Questcor Pharmaceuticals, a biopharmaceutical company based in Anaheim Hills, Calif., has signed a definitive agreement to acquire all issued and outstanding shares of BioVectra, a Canadian supplier of contract manufacturing services, for an upfront payment of $50 million.
BioVectra stakeholders could also receive additional cash consideration, based on BioVectra's financial results over the next three years. The contingent payments could result in the payment of up to an additional $50 million. The transaction is expected to be immediately accretive to non-GAAP earnings. Subject to customary conditions, Questcor anticipates closing the transaction in January 2013.
BioVectra has been Questcor's manufacturing partner for the API in Questcor's H.P. Acthar Gel (repository corticotropin injection) for nearly a decade. The acquisition will enable Questcor to further secure the manufacturing process trade secrets surrounding Acthar. BioVectra will continue to operate independently in Prince Edward Island, under its existing management team and Questcor intends to support the continued growth of BioVectra's business.
"We are excited to join efforts with BioVectra as we look to diversify our revenue," said Don M. Bailey, president and CEO of Questcor. "This action puts us in a better position to meet the continuing growth in demand for Acthar, brings to our company a broader depth of technical and scientific expertise, and provides us with a platform for potential international expansion."
BioVectra's capabilities include synthetic organic chemistry, natural extraction of bioactive compounds from plant and animal-based biomass sources, PEGylation and conjugation chemistry and fermentation of a variety of molecule types. BioVectra's facilities have been approved by U.S. and Canadian regulatory authorities to produce and supply intermediates, API's and drug substances.
BioVectra's facilities are staffed by approximately 180 employees including chemists, engineers and technicians. BioVectra had sales of approximately $28 million in its last fiscal year ended August 31, 2012, a 15% increase over its prior fiscal year.