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news.Mylan is planning to take over Bioniche Pharma, an injectable pharmaceutical company, for $550m in cash, to gain entry not only into the North American injectables market but also a platform for future growth opportunities.
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Mylan is not assuming any of Bioniche Pharma’s outstanding debt or acquiring the company’s cash as part of the transaction. Mylan expects to finance this transaction using a combination of cash on hand and available borrowings.
In addition, Bioniche Pharma combined with UDL Laboratories, Mylan’s unit dose business, will form ‘Mylan Institutional,’ a new hospital/institutional business in the North American region of the company’s generics segment.
The business will focus on the hospital and institutional markets through which Mylan will serve group purchasing organizations, wholesalers, hospitals, surgical and radiology services, home infusion and retail areas with a differentiated and tailored product offering.
Robert Coury, chairman and CEO of Mylan, said: “With this one transaction, we will have acquired the necessary mass to compete in the attractive US injectables market as well as the ability to even further leverage this business throughout the rest of our commercial platform.”
Heather Bresch, president of Mylan, said: “Bioniche Pharma injectables and Mylan’s US offerings, including Mylan Pharmaceuticals’ extensive solid-dose portfolio, Mylan Technologies’ transdermal technologies, such as Fentanyl Transdermal System; and UDL Laboratories’ distribution channel, are expected to position Mylan in the US institutional marketplace.
“In addition to filling the gap for Mylan in this important therapeutic category and because of the nature of the institutional marketplace, Bioniche Pharma is expected to fill a prerequisite toward the viability of the commercialisation of Mylan’s own generic biologics platform in the near future.”
The closing of the transaction is conditional upon regulatory approvals and other customary closing conditions and is expected to occur within 60 days.