Advertise With UsAdvertise on our extensive network of industry websites and newsletters.
Get the PBR newsletterSign up to our free email to get all the latest PBR
news.Concordia Healthcare has completed the previously announced acquisition of Donnatal, an adjunctive therapy in the treatment of irritable bowel syndrome (IBS) and acute enterocolitis, from a privately held specialty pharmaceutical company carrying on business as Revive Pharmaceuticals (Revive Pharmaceuticals).
Subscribe to our email newsletter
Donnatal is available in two formulations: immediate release Donnatal Tablets, and immediate release Donnatal Elixir, a fast acting liquid.
For decades, Donnatal has delivered gentle relief from the symptoms of IBS. In addition to the drug, Concordia is acquiring the sales and marketing infrastructure related to the product.
The International Foundation for Functional Gastrointestinal Disorders reports that irritable bowel syndrome affects between 25 and 45 million people in the United States (10 to 15 percent of the population) with a greater incidence in women.
According to the National Institutes of Health, as many as 30 percent of Americans suffer from IBS at some time in their lives. It is not associated with hospitalization and surgery, but it can severely compromise a person’s quality of life.
IBS is second only to the common cold as a cause of absenteeism from work. IBS is one of the top 10 reasons for physician visits and the second most frequently encountered diagnosis in clinical practice, accounting for more physician visits than any symptoms other than those for respiratory tract infections.
"Donnatal is a medication that I have been prescribing for decades. It remains an effective treatment and provides value for the management of symptoms of irritable bowel syndrome," said Dr. David A. Peura , MD, Emeritus Professor of Medicine at University of Virginia , former President and Chairman of the Board of Governors of the American Gastroenterological Association (AGA) and recipient of the 2011 Julius Friedenwald Medal , the highest honor awarded by the AGA.
During 2013, Donnatal generated revenues of US$49.1 million and EBITDA1 of US$40.2 million.
The Company acquired Donnatal for US$200 million in cash and an aggregate of 4,605,833 common shares of Concordia, representing approximately 16.17% of the Company’s outstanding common shares on a non-diluted basis (approximately 14.96% on a fully-diluted basis) after giving effect to the acquisition.
At the closing of the acquisition, Paul Manning , founder of PBM Capital Group and Revive Pharmaceuticals, was appointed to the board of directors of the Company.
Management paid for the cash component of the acquisition through a combination of available cash and debt financing.
Accordingly, the Company entered into a secured credit facility having a principal amount of up to US$195 million , consisting of a US$170 million term loan and a US$25 million operating line (the "Credit Facility") with GE Capital, Healthcare Financial Services and a syndicate of lenders.
The Credit Facility is secured by the assets of the Company and the assets of its material subsidiaries.
Torreya Partners and GMP Securities acted as financial advisors to Concordia . Lazard Middle Market acted as financial advisor to Revive Pharmaceuticals.