The deal to buy privately-owned Bioniche is likely to add to the generic-drug producer's earnings in the first year after closing. Ireland-based Bioniche posted revenue for the 12 months ended May 31 of $130 million with much of its sales achieved in the US.
Mylan stated it would not assume any of Bioniche's outstanding debt or purchase its cash in the deal, which it will finance with available cash and borrowings. The deal is expected to close in 60 days.
The deal gives Mylan an entrance into the lucrative North American market for injectable drugs – an industry worth in excess of $25bn in sales.
Market research analysts attribute the sector’s growth to the rise in patient demand, healthcare and pharma cost containment, as well as medical and technological advances.
The deal gives Mylan a whole host of additional products and drugs that are mainly sold to hospitals in the US. These products include analgesics and anaesthetics with drugs used in orthopaedics, oncology, and urology.
Bioniche will form part of a venture in which Mylan's unit dose business, UDL Laboratories, will merge with Bioniche to form Mylan Institutional. The business will target the hospital/institutional sector in the North American region of the company's generics segment.
Mylan also gain control of Bioniche investments made in bolstering its pipeline. This pipeline includes 15 abbreviated New Drug Applications pending approval by the US Food and Drug Administration (FDA) as well as more than 25 additional products in various stages of development.
Mylan’s latest purchase comes amongst a midst of recent litigation and acquisition-related expense notably in recent quarters. In April, the firm reported a fall in first-quarter profit as a result of acquisition and restructuring costs. In the most recent quarter, Mylan recorded integration, restructuring, severance and employee benefit related charges of $12.1m.
In March of this year, Mylan announced that it has entered into settlement agreements with Takeda Pharmaceutical relating to two treatments for type 2 diabetes.
Prior to that, February saw Mylan become the focus of litigation by Pfizer in connection with the filing of an Abbreviated New Drug Application (ANDA) with the FDA for Amlodipine Besylate and Atorvastatin Calcium Tablets.