Concordia spends $1.2 billion on Covis Pharma assets

Canadian pharma and medical devices company Concordia Healthcare Corp (TSX: CXR) has entered into a definitive asset purchase agreement to acquire substantially all of the commercial assets of privately held Swiss specialty drug firm Covis Pharma Sàrl and Covis Injectables Sàrl $1.2 billion in cash.

The acquisition, which is expected to close in the second quarter of 2015, is subject to satisfaction of customary closing conditions (including receipt of required regulatory approvals). The board of directors of all parties to the transaction have approved the acquisition.

The Covis drug portfolio being acquired consists of 18 branded and authorized generic products with stable revenue, strong margins and free cash flow. Key products include the prostate cancer therapy Nilandron (nilutamide) and the pheochromocytoma treatment Dibenzyline (phenoxybenzamine). Other products included in the acquisition are the cardiovascular drug Lanoxin (digoxin) and the lupus and rheumatoid arthritis therapy Plaquenil (hydroxychloroquine).