Horizon Pharma Acquires Hyperion Therapeutics and Its Revenue-Boosting Pipeline for $1.1B
Published: Mar 31, 2015
March 30, 2015
By Krystle Vermes, BioSpace.com Breaking News Staff
Ireland-based Horizon Pharma plc announced today that it has purchased California-headquartered Hyperion Therapeutics for $1.1 billion. Hyperion, a commercial stage biopharmaceutical company, generated $30.8 million during the fourth quarter of 2014. It will bring its revenue and extensive pipeline, which includes Ravicti and Buphenyl, to Horizon through the transaction.
"This transaction will be immediately accretive to adjusted EPS and we expect the contribution of Ravicti and Buphenyl in 2016 will add approximately $100 million to our adjusted EBITDA, including cost synergies contributing greater than $50 million,” said Timothy Walbert, chairman, president and chief executive officer of Horizon Pharma. “Additionally, this acquisition further accelerates our near- and long-term sales and adjusted EBITDA growth and provides significant value for both Horizon and Hyperion shareholders."
Horizon’s product line has now increased from five to seven, with the addition of Ravicti and Buphenyl. Net sales of the two drugs for the full year of 2014 were $113.6 million.
Building Off of Hyperion’s Success
In February 2015, Hyperion announced all of its financial results for the fourth quarter and 2014 as a whole. The revenue from Ravicti and Buphenyl was 65 percent more than it was in the fourth quarter of 2013.
Stemming from the success of the two products, Hyperion predicts that its net revenues will be in the range of $120 to $128 million for 2015. The company sees Ravicti bringing in up to $113 million, while Buphenyl could result in $15 million.
Ravicti and Buphenyl are both designed to treat urea cycle disorders. Buphenyl, also known as sodium phenylbutyrate, helps by removing nitrogen from the body. Ravicti, or glycerol phenylbutyrate, eliminates ammonia in patients over 24 hours. Urea cycle disorders and metabolic disorders impact more than 2,100 people in the U.S.
"During the last two years, we have solidified our position in the orphan disease space and made significant progress in bringing life-changing medicines to people with urea cycle disorders," said Donald Santel, president and chief executive officer of Hyperion Therapeutics.
"I would like to thank my colleagues for their tireless commitment to advancing the clinical development and understanding of Ravicti, Buphenyl and urea cycle disorders. Horizon shares our commitment and I'm confident that the strength of its existing orphan business unit will continue to expand the reach of these important medicines to more patients impacted by these disorders."