Mylan Inc plans to acquire Bioniche Pharma Holdings Limited, a privately held, global injectable pharmaceutical company for US$ 550 million in cash. Bioniche Pharma will provide Mylan not only an immediate entry into the North American injectables market but also a platform for future growth opportunities. This transaction is expected to be accretive to Mylan's earnings in year one, without accounting for any operational or other synergies.
Mylan chairman and CEO Robert J Coury said, "We are extremely pleased to be adding this complementary, high growth, high margin business to our one-of-a-kind global pharmaceutical platform. Bioniche Pharma has maintained a long-held strategy of focusing on quality injectable products with limited competition and difficult-to-develop and -manufacture compositions. With this one transaction, we will have acquired the necessary critical mass to compete in the attractive US injectables market as well as the ability to even further leverage this business throughout the rest of our global commercial platform."
In addition, Bioniche Pharma combined with UDL Laboratories, Mylan's unit dose business, will form "Mylan Institutional," a new hospital/institutional business in the North American region of the company's generics segment. This business will focus on the hospital and institutional markets through which Mylan will serve group purchasing organizations, wholesalers, hospitals, surgical and radiology services, home infusion and retail areas with a differentiated and tailored product offering.
Mylan president Heather Bresch commented, "This acquisition satisfies one of our long-standing objectives of filling product and therapeutic gaps in our US portfolio. Bioniche Pharma injectables and Mylan's US offerings - including Mylan Pharmaceuticals' extensive solid-dose portfolio; Mylan Technologies' innovative transdermal technologies, such as Fentanyl Transdermal System; and UDL Laboratories' well-established distribution channel - are expected to position Mylan as a leader in the US institutional marketplace."
Bresch added, "In addition to filling the gap for Mylan in this important therapeutic category and because of the nature of the institutional marketplace, Bioniche Pharma will fill an extremely important prerequisite toward the viability of the commercialization of Mylan's own generic biologics platform in the near future."
Bresch also noted, "I am excited to bring Bioniche Pharma and its employees into the Mylan family of companies, and I am pleased to report that we have secured employment contracts with key members of Bioniche Pharma's management team."
Bioniche Pharma, based in Galway, Ireland, had approximately US$ 130 million in net revenue for the twelve months ended May 31, 2010, and approximately US$ 43.5 million in net revenue for the three-month period ended May 31, 2010.
Bioniche Pharma is a global manufacturer of injectable pharmaceutical products serving a variety of niche markets, including analgesics/anaesthetics, orthopaedics, oncology, and urology.