Horizon Pharma bags Hyperion in US$1.1bn deal
31.03.2015 - In its aim to expand its drug portfolio in orphan disease products, Horizon Pharma has acquired US company Hyperion Therapeutics for US$1.1bn in cash. The takeover entitles the UK biopharma to all of Hyperion’s common stock.
Horizon will take on two treatments from Hyperion’s portfolio for a rare metabolic condition. “The Hyperion acquisition will expand and diversify our product portfolio by adding two complementary orphan disease products, Ravicti and Buphenyl, and leverage as well as expand the existing infrastructure of our orphan disease business,” Horizon Chief Executive Timothy P. Walbert said. Ravicti and Buphenyl are medicines used to treat Urea Cycle Disorders (UCD).
Orphan diseases, also known as rare diseases, are rare conditions that affect a small percentage of the population, i.e. less than 5 in 10,000 people. According to the EU, the number of persons in Europe suffering from a rare disease is estimated at over 30 million. The pharmaceutical industry are often reluctant to tackle these conditions as there is little financial incentive to develop treatments.
The deal has been approved by both boards and is expected to close in the second quarter of 2015. The Hyperion deal furthers Horizon Pharma’s business operations in the US. In 2014, the Irish company bought the US rights to AstraZeneca’s Vimovo delayed-release tablets for osteoarthritis and rheumatoid arthritis.