Emergent BioSolutions in $735 million deal to acquire Narcan maker

In a move to broaden the company’s portfolio of only-in-class medical countermeasures Emergent BioSolutions (NYSE: EBS) has reached agreement to acquire fellow USA-based firm Adapt Pharma and its flagship product Narcan (naloxone HCl) Nasal Spray, the only Food and Drug Administration-approved nasal form of naloxone indicated for the emergency treatment of known or suspected opioid overdose

The total consideration for the transaction is up to $735 million consisting of an upfront of $635 million and up to $100 million in cash for potential sales-based milestones through 2022. The upfront payment of $635 million consists of $575 million in cash and $60 million in Emergent common stock, all of which are subject to certain adjustments under the terms of the agreement.

The acquisition is expected to generate incremental revenues of $200 million to $220 million and to be accretive to adjusted net income and earnings before interest, taxes, depreciation and amortization (EBITDA) in 2019. Emergent also expects that, with the completion of this acquisition and the recently announced acquisition of PaxVax, it will achieve or exceed its growth plan goal of $1 billion in revenue in 2020