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.”
This article is brought to you by Revive Therapeutics (TSXV:RVV). Click here to learn how Revive repurposes drugs for treatments in sleep apnea, gout and rare diseases.
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At press time, shares of Concordia Healthcare were up 5.4% to $16.69.