Emergent BioSolutions, which has long supplied the U.S. federal government with anthrax vaccine, last week announced a definitive agreement with Cangene Corporation under which Emergent will acquire all of the outstanding common shares of Cangene in an all-cash transaction valued $222 million.
Cangene’s biodefense business sells three drugs to the U.S. government, including treatments for smallpox, botulism and Anthrax. Cangene also has a commercial portfolio of treatments immune thrombocytopenic purpura, Hepatitis B and chickenpox.
In total, Cangene collected $127.3 million in revenue for the fiscal year ending July 31, 2013. The firm turned a profit of $1.4 million that same year, up from a net loss of $28.3 million during prior fiscal year.
“The acquisition of Cangene is consistent with our stated growth plan to acquire revenue generating products that leverage our core capabilities,” said Daniel J. Abdun-Nabi, president and chief executive officer of Emergent BioSolutions. “The addition of Cangene is expected to accelerate our growth driven by a substantially expanded biodefense franchise, a portfolio of approved specialty therapeutics sold through an established commercial infrastructure, and fill/finish manufacturing capabilities with growing contract revenues.”
The combined company presents a clearly attractive financial profile with pro forma total revenues of over $430 million and pre-tax operating income of approximately $55 million.
This is the second major acquisition for Emergent in 2013, having acquired Healthcare Protective Products Division of Bracco Diagnostics for $26 million earlier in the year, including Bracco’s chemical warfare agent decontamination lotion.