UCB sells generics unit to Lannett

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UCB sells generics unit to Lannett

INICIO/Noticias Farmacéuticas | Posted 11/09/2015 0 Post your comment

Belgium-based biopharmaceutical company UCB announced on 2 September 2015 that it would sell its US specialty generics business, Kremers Urban, to US generics company Lannett for US$1.23 billion in cash plus contingent payments.

The news follows UCB’s failed attempt to sell the US generics business to private equity firms Advent International and Avista Capital Partners for US$1.53 billion in December 2014. That deal collapsed after the US Food and Drug Administration (FDA) asked for further studies on its generic version of Johnson & Johnson’s Concerta (methylphenidate) pill for attention deficit hyperactivity (ADHD).

The acquisition will boost Lannetts’ generics portfolio, bringing 18 commercialized products into the Lannett offering, and including generics for ADHD, high blood pressure, respiratory diseases and gastroesophageal reflux. While on the other hand, it will allow UCB to concentrate on its innovative medicines pipeline. This new focus by UCB was also in evidence in its decision to sell its Indian established brands portfolio to Dr Reddy’s in April 2015.

Lannett will also gain a strong pipeline that includes 11 product applications pending at FDA, of which five include Paragraph IV certifications, and 17 product candidates in various stages of development, including one 505(b)(2) product opportunity. Kremers Urban brings additional research and development and regulatory expertise, particularly in the areas of difficult-to-manufacture products and Paragraph IV certifications. As part of the transaction, Lannett will also receive Kremers Urban’s recently inspected 381,000 square foot state-of-the-art facility in Seymour, Indiana, USA, which has substantial manufacturing and warehousing capacity, as well as dedicated product development space.

The deal is expected to be finalized in the fourth quarter of 2015 and has been unanimously approved by the Boards of Directors of both Lannett and UCB.

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Source: Lannett, UCB