Dublin-based Jazz Pharmaceuticals ($JAZZ) has done it again. Just months after completing a merger with Azur Pharma, Jazz has picked up specialty drugmaker Eusa Pharma for up to $700 million: $650 million in cash and the potential for a $50 million milestone.
Eusa's main product is Erwinaze, approved by the FDA in November for a subset of patients with acute lymphoblastic leukemia who have immune reactions to an existing version of the therapy made with E. coli, the company said today. The drug has orphan drug exclusivity through November 2018 and biologic data exclusivity through 2023. In addition, it is approved in 7 countries outside the U.S. Eusa has operations in Oxford, England, and Langhorne, PA.
The deal is for $650 million in cash and the potential for a $50 million milestone, The Wall Street Journal reports. Jazz expects the deal to add $210 million to $230 million in revenue and 75 cents to 85 cents in earnings a share.
Jazz, which has often been the subject of buyout speculation itself, got most of its revenue from its narcolepsy drug Xyrem until it bought Azur, also based in Dublin. Azur's portfolio includes CNS products like FazaClo and Prialt, along with women's health and urology products that include Elestrin. It also has an orphan product, Gastrocrom, used to treat mastocytosis.
The deal is expected to close in June after being vetted for antitrust concerns, The Associated Press reports. Jazz will finance it with a $500 million term loan and a $100 million revolving credit facility. Jazz Pharmaceuticals' shares were off 18 cents to $45.20 at day's end Thursday but jumped 11.2 percent, or $5.05, in after-hours trading once the deal was announced.