Clinigen Acquire Novartis’ Rights for Drug

| By | Clinigen, Novartis

Clinigen Group plc, the global pharmaceutical and services company, has signed an agreement with Novartis to acquire the US rights to Proleukin® (aldesleukin, human recombinant interleukin-2) for up to $210m in cash, consisting of an upfront and deferred payments along with future sales related milestones.

Clinigen already owns the rights to Proleukin outside the US, which it acquired in July 2018.

Clinigen expects adjusted EBITDA in the six months ended 31 December 2018 to be £41.8m (2017: £34.4m) representing 22% reported growth or 8% growth on an organic basis, underlining how the Group continues to be highly cash generative.

On completion, the Group’s bank covenant leverage is expected to be around 2.4x net debt/EBITDA before reducing towards 2.0x by 31 December 2019.

The completion of the acquisition is subject to US anti-trust clearance and is expected to occur in April 2019.

Shaun Chilton, Group Chief Executive Officer, Clinigen, said:

This highly earnings enhancing acquisition of US rights to Proleukin is significant to the whole Group not just the Commercial Medicines division. As part of Commercial Medicines, Proleukin is an excellent fit within our oncology and infectious disease medicines as well as diversifying our wider portfolio – it will be the largest product in the portfolio in terms of current sales. The product has significant potential for revitalisation, which will provide further breadth and diversity to the portfolio and material increases in revenues. For Clinigen as a whole, Proleukin creates an ideal platform to expand our existing footprint in the higher value US market and therefore enables us to exploit other opportunities across the business. This follows our acquisition last year of CSM and iQone which strengthened our Continental European footprint. At the financial level, the combination of this deal structure and the Group’s cash generative nature will ensure our debt profile reduces quickly over the next year.”

SOURCE: Clinigen Group
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