Supernus Pharmaceuticals and Indivior Pharmaceuticals are outlining a combined expected $2.2 billion in annual revenue, plus $125 million in cost savings that will include “natural redundancies.”
Supernus Pharmaceuticals and Indivior Pharmaceuticals are joining forces, merging into one central nervous system–focused company with a whopping 11 marketed products in the space.
The all-stock merger of equals will combine the two companies’ revenue for an expected yearly revenue of $2.2 billion, according to a Monday release. Of that money, the East Coast biopharmas expect to collect around $888 million in operating earnings.
Nine of the commercial products come from Supernus, with non-stimulant ADHD medication Qelbree the company’s biggest money earner of the second quarter, bringing in $89 million—a nearly 15% jump from $78 million in Q1. The company also sells the daily pill Gocovri for Parkinson’s disease and postpartum depression treatment Zurzuvae, the latter of which was secured last year in its $795 million buyout of Sage Therapeutics.
As for Indivior, the company touts the once-monthly injection Sublocade, used to treat opioid use disorder. The drug netted $253 million in second-quarter revenue.
The new company will operate as Supernus and continue on the Nasdaq under ticker “SUPN.” Current Supernus CEO Jack Khattar will take the wheel of the combined entity, with Indivior board member Tony Kingsley set to serve as board chair.
By combining, the companies believe they can save a total of $125 million in expected annual costs, though specific operating efficiency efforts were not detailed. Together, the pair are expected to have a net debt of $878 million.
No workforce details were shared in the release or related SEC filings, though Khattar said on a Monday investor call that “natural redundancies” tied to the $125 million savings could be expected, specifically among general and administrative roles.
Ultimately, the new Supernus hopes the merger will boost financial flexibility and allow for both internal and external growth opportunities, including additional acquisitions. Beyond CNS, the company would look for business development opportunities in women’s health—an already-established vertical for Supernus, Khattar said on the call.
“With our combined commercial expertise and enhanced capabilities, we are well positioned to drive significant, durable growth across our diversified portfolio of medicines,” the CEO said in a prepared statement.
Under the terms of the deal, Supernus stockholders will receive 1.5 common shares of Indivior for each share of Supernus. Meanwhile, Indivior shareholders will receive a one-time cash dividend of $1 billion total immediately after the merger closes. To pay the $1 billion dividend, the companies secured a $650 million Citibank loan. When all is said and done, former Indivior stockholders will own 56.5% of the combined company, while Supernus shareholders will own 43.5%.
The deal has been approved by both companies’ boards and is slated to close in the fourth quarter of this year.
Elsewhere in the biopharma world, radiopharmaceutical-focused Curium and Lantheus announced an M&A deal, with Curium paying up to $8 billion to acquire Lantheus for up to $114.5 per share. The transaction is designed to combine Curium’s theranostics portfolio and global manufacturing platform with Lantheus’ U.S. radiodiagnostics business.
Meanwhile, rumors are swirling about potential merger talks between pharma giants Bristol Myers Squibb and AstraZeneca. Analysts are skeptical of the possible mega-merger, but if it were to occur, the deal would be the largest in the industry’s history.
