Winnipeg-based Cangene Corp. is the latest Canadian private biopharmaceutical company to be purchased by a U.S. buyer after being acquired by Emergent BioSolutions in an all-cash transaction valued at US$222 million (approximately $236 million Canadian).
Cangene makes and sells several specialty plasma-based products that are used to counter the effects of anthrax and other toxins. Cangene is best known for its flagship drug WinRho, which is used to treat a blood disorder known as immune thrombocytopenic purpura, as well as hemolytic disease of the newborn. It also produces drugs for patients with Hepatitis B, chickenpox and has manufacturing facilities in Winnipeg and Baltimore, and a plasma collection facility in Winnipeg.
Terms of agreement
Under the terms of the agreement, which has been approved by the boards of directors of both companies, Cangene shareholders will receive US$3.24 per share (C$3.44 per share) in cash. The purchase price represents a premium of approximately 27 per cent to Cangene’s closing stock price of C$2.70 on December 10, 2013. The acquisition will be implemented through a court-approved Plan of Arrangement under Canadian law and is subject to the approval of Cangene common shareholders, court approval and U.S. regulatory approvals and other customary closing conditions.
Deal expands on Emergent’s biodefense business, for Cangene it’s business as usual
John Sedor, president and CEO of Cangene, said: “Over the last few years, our team has transformed Cangene into an exceptional specialty biopharmaceutical company and biodefense leader, as demonstrated by our recent product approvals and biodefense contracts. We believe Cangene will now benefit from becoming part of Emergent, a leader in developing vaccines, as well as therapeutics for addressing critical diseases and disorders. The combination provides an excellent opportunity for our organization to continue its success, and it delivers immediate, significant value to Cangene shareholders.”
Daniel Abdun-Nabi, president and CEO of Emergent, said: “Cangene is a terrific addition to Emergent. Our businesses are highly complementary. The addition of revenue-generating products and services across biodefense, commercial specialty biopharmaceuticals, and contract manufacturing significantly advances Emergent towards achievement of our growth plan.”
The transaction is expected to be completed in the first calendar quarter of 2014.
Cangene joins growing list of Canadian healthcare product companies acquired in the past few months
The deal is the latest in a list of take-overs among Canada’s pharmaceutical and health care companies. In November, New York hedge fund JLL Partners partnered with Dutch health-care company Royal DSM to buy out Toronto-based contract drug maker Patheon Inc while specialty drug distributor Paladin Labs Inc. was sold to Pennsylvania-based Endo Health Solutions Inc. In October, medical lab testing company CML HealthCare Inc. was purchased by LifeLabs Medical Laboratory Services.
For more Biotechnology Focus coverage of Cangene Corp. see:
1. Manitoba’s Bio Builder
2. Cangene extends biodefence contract with U.S. government
3. Cangene’s hemophilia compound gets green light from FDA
4. Cangene announces FDA approval of Botulism Antitoxin