Recordati To Acquire Eusa Pharma (Uk) Ltd, a Global Specialty Pharmaceutical Company Focused on rare and Niche Oncology Diseases
• Further strengthens the growth trajectory of the rare disease franchise, in line with 3 year plan strategy
• Broadens Recordati’s rare disease therapeutic focus and enhances the breadth of indications
• Addition of growing portfolio of 4 rare and niche oncology disease products, providing a platform for potential future expansion
• Complements Recordati’s global footprint and expertise with new capabilities and a highly efficient and focused commercial infrastructure
Milan, 3 December 2021 – Recordati announces the signing of a share purchase agreement to acquire EUSA Pharma (UK) Ltd, a global specialty pharmaceutical company with headquarters in the United Kingdom, focused on rare and niche oncology diseases and controlled by funds managed by EW Healthcare Partners.
EUSA Pharma was founded in March 2015 and has grown rapidly into a world-class pharmaceutical company with a portfolio of 4 rare and niche oncology products with approximately €130 million LTM(1) Net Sales at 30 June 2021 and Net Debt of around €26 million at that same date.
The company has extensive commercial operations in the EMEA and United States, alongside a presence in other international markets.
The company employs more than 200 people with strong patient centric culture and deep disease area expertise.
EUSA Pharma’s products include:
The transaction would provide Recordati with an expanded portfolio of rare disease pharmaceutical products which is expected to contribute in 2023 revenue of over €150 million and EBITDA(2) of approximately €50 million. Non-recurring costs in 2022-2023 from on-going manufacturing technology transfer and acquisition and integration related expenses are estimated to be approximately €35 million (subject to timing of close).
EUSA’s product portfolio is expected to reach total annual peak sales of around €250 million, including the potential Qarziba® approval in the US, with EBITDA(2) margin in line with the average of the current rare disease segment.
The transaction does not change the Recordati dividend policy which is confirmed as approximately 60% of reported Consolidated Net Income.
“We believe that the EUSA Pharma acquisition represents an excellent opportunity to further expand and reinforce our portfolio in a new and underserved therapeutic area, rare and niche oncology, with high potential growth products and will provide a platform for potential further future expansion in these areas.
This is another important step forward in delivering on our strategy to increase our presence in the rare disease segment and to fulfil our mission to improve the lives of patients, delivering innovative treatments that address serious unmet medical needs” said Andrea Recordati, Chairman.
“EUSA Pharma has a highly efficient commercial infrastructure, deep disease area expertise and an organisation with a very strong patient centric culture which we look forward to welcoming and integrating into Recordati, maintaining key skills, knowledge, business know-how and customer relations” commented Robert Koremans, Chief Executive Officer.