Italian drugmaker Recordati has agreed on a price for six-year-old EUSA Pharma. The Milan-based firm will pay €750m ($845 million) for EUSA’s portfolio of drugs to treat rare cancers.
U.K.-based EUSA, which employs 200 people around the world, has developed four products, including an antibody treatment for children with neuroblastoma. A potential FDA approval for the treatment, known commercially as Qurziba, could bump annual sales of EUSA’s products from €130 million ($147 million) to €250 million ($282 million), Recordati said in a Friday release.
Another promising product Recordati acquires in the deal is Caphosol, an FDA-approved medical device to counter some side effects from chemotherapy and radiotherapy. Also included is Sylvant, an approved antibody for idiopathic multicentric Castleman’s disease, and Fotivda, an oral treatment for advanced renal cell carcinoma.
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The company said it expects the deal to complete in the first half of next year.
“(This) represents an excellent opportunity to further expand and reinforce our portfolio in a new and underserved therapeutic area, rare and niche oncology, with high potential growth products and will provide a platform for potential further future expansion,” Recordati new chairman and former CEO Andrea Recordati said in the release.
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The acquisition comes three years after private equity player CVC Capital Partners came up with €3.03 billion ($3.4 billion) to pick up the Recordati family’s 52% controlling stake in Italian company, following the death of CEO Giovanni Recordati. When the deal was struck, CVC said its goal was to expand Recordati’s rare disease business.