Nichi-Iko Pharmaceutical Co., Ltd to Acquire Sagent Pharmaceuticals

11-Jul-2016 - Japan

Nichi-Iko Pharmaceutical Co. and Sagent Pharmaceuticals, Inc. announced that they have entered into a definitive merger agreement under which Nichi-Iko will acquire Sagent via an all-cash tender offer (the “Tender Offer”) followed by a second-step merger, for a total consideration of approximately $736 million.

The acquisition price represents a premium of approximately 40.3% to Sagent’’s closing price of $15.50 per share on July 8, 2016. The transaction, which has been unanimously approved by the Nichi-Iko and Sagent Boards of Directors, is expected to close in the second quarter of Nichi-Iko’s fiscal year ending March 2017, subject to customary regulatory approvals.

The acquisition brings together two companies in the generics market with highly complementary portfolios, creating growth opportunities for each business. The transaction enhances Nichi-Iko’s platform in the U.S. market to commercialize its biosimilar product pipeline and increase its presence in injectables. Through the acquisition, Nichi-Iko will raise its profile in the domestic and international generics market and advance the company’s goal of becoming a Top 10 global leader in generics.

Sagent will benefit from Nichi-Iko’s portfolio of both biosimilars under development and injectable products, further enhancing its competitiveness in the U.S. market – the largest generic drug market in the world. The deal will also give Sagent access to Nichi-Iko’s sophisticated manufacturing infrastructure and industry-leading quality control systems, and enable it to bring high quality, cost-effective generic medicines to more patients. No changes to Sagent’s current operations are currently anticipated and Nichi-Iko expects that Sagent’s current management team will continue to lead Sagent from its headquarters in Schaumburg, Illinois.

https://www.bionity.com/en/news/158878/nichi-iko-pharmaceutical-co-ltd-to-acquire-sagent-pharmaceuticals.html