UPDATE 1-Concordia Healthcare to buy some assets of Covis Pharma for $1.2 bln

Mon Mar 9, 2015 8:03am EDT
 
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(Adds details from statement)

March 9 (Reuters) - Concordia Healthcare Corp, which makes drugs for rare diseases and devices for diabetic patients, said it would buy some assets of privately held Covis Pharma Holdings SARL for $1.2 billion in cash.

Concordia said the drug portfolio it will acquire consists of 18 branded generic products, including generic drugs for heart diseases, neurological disorders and cancer.

Covis expects the portfolio to generate revenue of $140 million to $145 million in 2014, with gross margin of about 90 percent, Concordia said.

Concordia expects the deal to add over 50 percent to adjusted earnings in 2015.

The company reported a profit in the third quarter of 2014 after two quarters of losses. Overall it earned about $7.9 million in the first three quarters of 2014.

Oakville, Ontario-based Concordia said the drug portfolio is part of the two Covis units it is acquiring, Covis Pharma SARL and Covis Injectables SARL - both headquartered in Switzerland.

Covis Pharma Holdings, the parent company, is controlled by affiliates of Cerberus Capital Management L.P., Princeton Biopharma Capital Partners LLC and Bourne Partners.

RBC Capital Markets is Concordia's financial adviser, and Sullivan & Cromwell LLP and Fasken Martineau DuMoulin LLP is its legal counsel.

Lowenstein Sandler LLP is Covis' legal counsel, and Bourne Partners served its financial adviser. (Reporting by Sneha Banerjee in Bengaluru; Editing by Savio D'Souza)