Mylan Inc. (MYL: 18.17 0.00 0.00%) recently announced its plans to acquire privately held Bioniche Pharma Holdings Ltd for $550 million in cash. The company said it will not assume any of Bioniche’s outstanding debt or acquire its cash as a part of the transaction. Mylan plans to finance this transaction using a combination of cash on hand and available borrowings.The deal gives Mylan a direct entry into the North American injectable drugs market. The acquisition is expected to close within 60 days (following regulatory approval) and should add to Mylan’s profits in the first year itself, without accounting for any operational or other synergies.
Ireland-based Bioniche Pharma is a global manufacturer of injectable pharmaceutical products, which include treatments for analgesics/anesthetics, orthopedics, oncology and urology. While Bioniche Pharma has more that 30 products in the market, its pipeline consists of 15 Abbreviated New Drug Applications pending approval at the US Food and Drug Administration along with 25 products in various stages of development. These products will help drive top- and bottom-line growth.
For the 12 months ended May 31, 2010, Bioniche Pharma posted net revenue of about $130 million.
Mylan plans to combine Bioniche Pharma with its own unit dose business, UDL Laboratories, to form a new hospital or institutional business unit called Mylan Institutional, which will be a part of the company’s North American generics segment.
Mylan Institutional will focus on hospital and institutional markets, where Mylan will offer its products to group purchasing organizations, wholesalers, hospitals, surgical and radiology services, home infusion and retail areas.| Analysts' Targets | |
| Oppenheimer & Co. Inc. | $24 |
| Outperform | |
| Wednesday, February 03, 2010 | |
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