Nuvo Pharmaceuticals, a Canadian healthcare firm, has completed the acquisition of a portfolio of more than 20 revenue-generating products of Aralez Pharmaceuticals.
Earlier, the news of Nuvo having a conference call/audio webcast on January 2, 2019, at 8:30 a.m. EST was released. The call was about providing the details of the transaction, Aralez’s key products, and financing deal. The call was hosted by Jesse Ledger, who is Nuvo’s CEO as well as the President and Vice President, and CFO of Nuvo, Mary-Jane Burkett.
Jesse Ledger stated that the completion of this acquisition has made Nuvo one of the leading pharmaceutical firms in Canada. He explained that Nuvo is now completely different from their peers, as they have superior infrastructure to support their international business, top-class production facility and a robust portfolio of growth products, which includes development of new product opportunities.
Jesse Ledger further stated that their acquisition is backed by a robust and experienced management team and enhanced business setup that will help the company to grow, make profits, and create values in the coming future.
Aralez was formerly known as Tribute Pharmaceuticals Canada. A growing firm, it includes Suvexx, Cambia, Blexten, along with Canadian distribution rights to Resultz. Furthermore, this acquisition will pave way for Nuvo to purchase and introduce more commercial products in Canada.
Besides purchasing products from Aralez, Nuvo also obtained worldwide rights and royalties from licensees for Vimovo, global, Yosprala, and ex-U.S. product rights to MT400, which is presently marketed as Treximet in the United States.
It cost Nuvo roughly US$ 110 million to close the deal. The amount didn’t include $4.4 million, which was a deposit paid previously and was conditioned to indebtedness adjustments and certain working capital.
Nuvo was able to pay off the price with the help of funding offered by certain funds handled by a famous, global, and healthcare-specialized investor, Deerfield. Furthermore, the courts inspecting Aralez’s restructuring proceeds in the United States and Canada approved the acquisition. According to experts, this acquisition can help Nuvo achieve its following goals,
Huge cash flow from international royalties of global Vimovo sales and U.S.
Diversification of revenue from royalty revenues and product sales
The current commercial setup will stay the same to enable a hassle-free transition