Markets

Horizon (HZNP) To Acquire Crealta Holdings in a $510M Deal

Horizon Pharma plcHZNP announced it has entered into a definitive agreement to acquire Crealta Holdings LLC in a cash deal valued at $510 million. The acquisition is expected to close in the first quarter 2016.

What Does Horizon Pharma Gain?

The Crealta deal will add Krystexxa to Horizon Pharma's orphan drug portfolio, which already includes Actimmune, Rybicki and Buphenyl. Krystexxa is the first and only FDA-approved medicine for chronic refractory gout.

As per company sources, in the U.S., approximately 50,000 people suffer from chronic refractory gout. Since its FDA approval in 2010, Krystexxa has been prescribed to approximately 4,000 and 5,000 patients. The company expects to utilize its rheumatology sales force (currently promoting Rayos and Pennsaid 2%) and orphan drugs marketing expertise to increase the number of patients identified and treated with Krystexxa.

Horizon Pharma expects to add $70 to $80 million in net sales in the first 12 months following closing of the deal.

The company is focused on expanding its orphan drug business, as evidenced by its long-range plan, wherein the orphan business is expected to constitute approximately 60% of net sales in 2020. The company has been quite active on the acquisition front over the past few quarters. Earlier this year, it acquired Hyperion Therapeutics in a deal valued at about $1.1 billion, thereby strengthening its position in the orphan disease market with the addition of a couple of urea-cycle disorder drugs to its portfolio.

Currently, Horizon Pharma carries a Zacks Rank #1 (Strong Buy). Other top-ranked stocks in the health care sector include Anika Therapeutics Inc. ANIK , Actelion Ltd. ALIOF and Baxalta Incorporated BXLT . While Anika and Baxalta sport Zacks Rank #1, Actelion carries a Zacks Rank #2 (Buy).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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