>Concordia Healthcare (TSX:CXR) today announced that it would acquire Donnatal® for US$200 million in cash and shares that have a current market value of (U.S.) $65.3 million.
Privately held specialty pharmaceutical company Revive Pharmaceuticals (not to be confused with Revive Therapeutics Ltd. (TSXV: RVV), a clinical-stage company developing novel therapies for gout, sleep apnea and rare diseases) will continue to operate without the treatment.
Concordia CEO Mark Thompson explained the reasoning behind the pickup.
“The acquisition of Donnatal® represents an important advancement in the execution of Concordia’s legacy product strategy, providing substantial and sustainable revenue going forward,” he said. “In addition, we believe that Donnatal will have a significant and positive impact on Concordia’s net earnings and EBITDA.”
According to the National Institutes of Health, some 30% of Americans suffer from IBS at some time in their lives. The condition is second only to the common cold as a cause of absenteeism from work. IBS is one of the top 10 reasons for physician visits and the second most frequently encountered diagnosis in clinical practice, accounting for more physician visits than any symptoms other than those for respiratory tract infections.
At press time, shares of Concordia Healthcare were up 5.4% to $16.69.