Impax to sell Taiwan manufacturing facility to Bora Pharmaceuticals

This sale supports Impax's operational and cost improvement plans to streamline operations and reduce costs.

Under the terms of the agreement, Bora will purchase all of the issued share capital in Impax Taiwan and certain loans outstanding between Impax and Impax Taiwan for a total purchase price of $18.5 million.

As a result of the sale, Impax expects to record a pre-tax impairment charge of approximately $70.0 to $80.0 million in the fourth quarter of this year.

"This agreement accelerates the benefits we expect to receive as part of our cost improvement program and allows us to achieve a full run rate of cost savings across all program initiatives by the end of 2018, one year ahead of schedule," said Paul Bisaro, President and CEO of Impax.

"I am also pleased that the agreement may provide continued employment opportunities for our colleagues in Taiwan. I want to thank employees for their commitment to preparing a successful transition."

Impax has also signed a supply agreement with Bora, effective upon closing of the transaction, to contract the manufacture and supply of certain of Impax's marketed and development products currently manufactured by Impax Taiwan.

Additionally, Bora will have the rights to market and sell Impax's branded Parkinson's drug Rytary (approved as Numient outside the U.S.) in Taiwan. The transaction is anticipated to close in the first quarter of 2018, subject to customary closing conditions.

"I am confident that this transaction creates value for both companies," continued Bisaro. "Through this agreement, Impax gains a high-quality contract manufacturing partner with expertise in manufacturing for multinational pharmaceutical companies. The deal also aligns nicely with Bora's international growth and expansion plans."