Emergent BioSolutions completes Adapt Pharma acquisition
Emergent BioSolutions announced that it has completed its acquisition of Adapt Pharma and its flagship product NARCAN Nasal Spray, the first and only intranasal form of naloxone approved by the U.S. Food and Drug Administration and Health Canada, for the emergency treatment of known or suspected opioid overdose. With the closing of this transaction, Emergent also acquires a development pipeline of new treatment and delivery candidates to address opioid overdose and brings on approximately 50 employees, located in the U.S., Canada, and Ireland, including those responsible for supply chain management, research and development, government affairs, and commercial operations. Total consideration for the transaction is up to $735M, which includes an upfront payment of $635M and up to $100M in cash for potential sales-based milestones through 2022. At the closing, the company paid $635M, consisting of $60M in Emergent common stock and $575M in cash, subject to customary closing adjustments, using a combination of cash-on-hand and borrowings under its new $1.05B syndicated senior secured credit facilities that the company entered into to fund the transaction. The company will be issuing financial results in early November for the three and nine months ended September 30, at which time it will provide an update on the impact of this transaction on full-year 2018 guidance.