Pozen, Inc., Tribute to Unite Under Newly Formed Aralez Label
June 8, 2015
By Alex Keown, BioSpace.com Breaking News Staff
NEW YORK – North Carolina-based Pozen, Inc. will acquire Tribute Pharmaceuticals Canada for $146 million. Both companies will unite under the newly formed named Aralez Pharmaceuticals, which will be based in Ireland.
The new company will utilize the products and pipelines from both pharmaceutical companies. The Aralez deal resulting in the combination of Pozen and Tribute is subject to stockholder approval by the Pozen and Tribute stockholders as well as other closing conditions. Aralez Pharmaceuticals Ltd. will re-register as Aralez Pharmaceuticals plc upon closing of such transactions. If all goes well, the deal is expected to be finalized by the end of 2015.
Adrian Adams, Pozen’s chief executive officer, said the acquisition will “enhance our offerings while providing significant benefits for all of our stakeholders.”
Rob Harris, CEO of Tribute, said the deal will allow the company to “leverage the expertise of its management team across the healthcare, pharmaceutical and, in particular, cardiovascular sectors.”
In response to the news, Pozen Inc.’s stock was trading at $9.09 per share this morning, up from the opening price of $8.50 per share. Tribute Pharmaceutical’s stock was also trending upward, trading at $1.23 per share, up from the opening of $1.05 per share.
The new Aralez has already received $300 million in funding provided by Deerfield Management Company. Under terms of the agreement Deerfield will provide $75 million in six year convertible notes, up to $25 million in equity and a $200 million commitment available for future product acquisitions. The new company will bring together the management team of both Tribute and Pozen, Deerfield said. However, there was no word on whether or not the new company would issue pink slips to avoid redundant positions, or would require additional employees to bolster new pipeline avenues. Deerfield did not respond to BioSpace inquiries by the time this article was published.
Aralez will use the capital funding to launch Yosprala upon approval from the U.S. Food and Drug Administration (FDA). Yosprala is Pozen’s “safer aspirin" product that contains either 325 mg or 81 mg of enteric-coated aspirin surrounded by 40 mg of immediate release omeprazole. In December Pozen and Sanofi terminated their agreement to commercialize Yosprala in the United States. The two companies stuck an agreement in 2013 that included $15 million in upfront money, an additional $20 million in milestone payments and tiered royalties of 12.25 to 22.5 percent. Also in December Pozen received two complete response letters from the FDA after investigators found deficiencies during an inspection of a foreign manufacturing facility. There were no clinical or safety issues noted in the letters with respect to the drugs, and no other problems were cited. With this vote of confidence, Aralez will have a unique mix of capital, products and talent, enabling us to drive significant innovation and growth,” Adams said in a statement.
In addition to Yosprala, Pozen also makes Treximet, an FDA approved drug for migraines. The company also co-developed Vimovo with AstraZeneca PLC . Vimovo was approved by the FDA for the relief of osteoarthritis, rheumatoid arthritis and ankylosing spondylitis, as well as to decrease the risk of developing gastric ulcers in patients at risk of developing NSAID-associated gastric ulcers.
Tribute markets migraine medication Cambia, hyperlipidaemia drug Bezalip SR, psoriasis drug Soriatane, NeoVisc, for the treatment of joint pain and others.
When Will Pfizer's Breakup Happen?
Speculation that the revamping of Pfizer Inc. ’s internal business structure could happen as soon as this year has biotech wondering just when this Big Pharma company could see changes.
Last week an analyst with J.P. Morgan said he thinks there will be a much faster timeline than most of Wall Street had predicted for Pfizer’s stated mission to refocus its efforts on new medicines.
Pfizer initially announced in 2012 that it would be shedding units that were non-essential to that goal. It then promptly sold its nutrition silo to Nestle for $11.85 billion, which was rapidly accompanied by a public spin-off of its animal health business for $2.2 billion.
“While a Pfizer break-up would likely be a 2017 event, we see potential catalysts in 2015-2016," said Chris Schott, an analyst at J.P. Morgan. "Three years of audited financial statements (2014-2016) are required before any part of Pfizer can be spun off, and we also see 2017 as an attractive time for action as investors see Pfizer’s innovative pipeline clearly contributing to growth and the established business having transitioned to a more stable profile."
BioSpace wants to know what you think: Will Pfizer be a changed company by the end of 2015?