Eagle Announces Acquisition of Acacia in Strategic Good Fit
New Jersey-based Eagle Pharmaceuticals, a company geared towards pharmaceutical hospital sales, has finalized terms to acquire Acacia Pharma. Closure of the acquisition is expected in the late second quarter of 2022. In order to meet this timeframe, shareholders of both companies will have to approve the transaction.
The appeal to acquire Acacia lies in part in two products that have already achieved U.S. Food and Drug Administration (FDA) New Drug Approval (NDA), allowing for marketing in hospital settings. Byfavo acts as the first step in adult sedation and aids in maintaining sedation for up to 30 minutes. Barhemsys has dual indications for prevention and treatment for postoperative nausea and vomiting (PONV). The latter is the first FDA-approved drug for PONV treatment. In estimation, each drug is expected to fill an annual market gap valuation of $400,000 and $2.7 billion, respectively.
Acacia graced biopharmaceutical news in 2020 with positive clinical safety and efficacy results for Byfavo. The clinical trial involved 2,400 participants and demonstrated a faster onset and offset than its market competitors.
“In the face of further challenges brought about by the COVID-19 pandemic, many smaller underfunded companies experienced significant hurdles launching products. We, therefore, believe that Eagle is well suited to drive uptake of these two new products, building from Acacia Pharma’s established foundation since its launch, through our experienced and specialized hospital-based sales organization with minimal additional infrastructure," said Eagle President and CEO, Scott Tarriff in a press release. This statement underscores the strategy behind the acquisition, to benefit both Eagle Pharmaceuticals and Acacia Pharma.
Eagle Pharmaceuticals already holds future distribution and marketing rights via a 2021 licensing agreement for AOP Orphan Pharmaceuticals’ landiolol, pending NDA approval from the U.S. FDA. Landiolol is a beta-1 adrenergic blocker with indications for short-term reduction of ventricular rate in patients diagnosed with supraventricular tachycardia, atrial fibrillation and flutter.
The therapeutic will join the rest of Eagle Pharmaceuticals’ hospital-focused roster as an emergency, short-acting medication derived from a unique dosing algorithm. Submission for NDA approval is planned to take place in the second quarter of 2022, alongside the closure of the Acacia acquisition.
Eagle Pharmaceuticals boasts of the commercialization of brand-name Pemfexy, injectable chemotherapy which will be marketed as an alternate to Alimta. Additionally, the company received approval in early 2022 to begin shipments of their generic form of Vasostrict, vasopressin. This generic has been given a temporary market exclusivity by the FDA, restricting competitors from the market for 180 days.
In 2021, Eagle Pharmaceuticals reported total revenue of $171.5 million and a net loss of $8.6 million. Revenue has dropped slightly from 2020, which showed a total of $187.8 million. Tarriff issued positive remarks about the company’s financial standpoint as strategic moves “position us to more than double our earnings this year. Based on early 2022 trends, we believe that our Q1 2022 earnings per share should approximate $4.00. Our pipeline is advancing as expected, and our balance sheet remains healthy”.