Horizon Therapeutics Plc on Monday agreed to buy Viela Bio Inc for about $3.05 billion in a move to expand its rare-disease portfolio.
Viela’s only approved drug, Uplizna, is used to treat a rare, severe, neuroinflammatory disease named neuromyelitis optica spectrum disorder that attacks the optic nerve spinal cord and brain stem.
“This acquisition represents a significant step forward in advancing our strategy – to expand our pipeline in order to accelerate our growth over the long term,” Horizon Chief Executive Officer Tim Walbert said.
Horizon already has some treatments for rare diseases, ranging from drugs to treat genetic disorder Chronic Granulomatous Disease, nephropathic cystinosis to urea cycle disorder.
The company will acquire all of Viela’s common stock for $53 per share in cash, a premium of 52.8% to Viela’s last close.
Viela will be required to pay a termination fee of $107 million to Horizon if the deal is terminated under certain circumstances.
Shares of Viela were up 53.4%, while Horizon was down marginally before the opening bell.
Separately, AstraZeneca Plc said on Monday it agreed to divest its 26.7% stake in Viela and expects to receive cash proceeds and profit of $760 million to $780 million upon closing of Viela’s deal with Horizon.
Horizon said in December that it saw a short-term supply disruption of its thyroid eye disease drug, Tepezza and expected it to continue through the first quarter of 2021 as a result of government-mandated COVID-19 vaccine production orders for its product contract manufacturer, Catalent.
Horizon, which had $2.08 billion in cash and cash equivalents as of Dec. 31, expects the transaction to reduce its adjusted EBITDA by about $140 million in 2021.
The company, which expects the deal to close in the first quarter of 2021, intends to finance the transaction through $1.3 billion of external debt along with cash on hand.
Source: Reuters.com