Impax Labs To Acquire Generic Products; Lifts FY Adj. EPS Growth View

(RTTNews) - Impax Laboratories Inc.(IPXL), a specialty pharmaceutical company, announced that it has signed definitive agreements with Teva Pharmaceutical Industries Ltd. (TEVA) and affiliates of Allergan plc (AGN) for the acquisition of a broad portfolio of generic products across solid oral, inhalable, injectable and topical dosage forms and the return to Impax of its rights to its pending abbreviated new drug application for the generic equivalent to Concerta or methylphenidate hydrochloride for an aggregate purchase price of $586 million.

Upon closing of the Transaction, Impax is expected to add a portfolio of 15 currently marketed generic products; One approved generic product and two approved strengths of a currently marketed product, which have not yet launched; One pipeline generic product and one pipeline strength of a currently marketed product, which are pending U.S. Food and Drug Administration approval; The full commercial rights to Impax's pending ANDA for the generic equivalent to Concerta (methylphenidate hydrochloride), a product previously partnered with Teva; and One generic product under development.

Upon closing, the immediately accretive transaction will provide Impax with a profitable and growing commercialized portfolio of products. The acquired marketed generic products generated approximately $150 million in net sales and approximately $100 million in gross profit in 2015. According to IMS Health (NSP), the pending and development pipeline programs are estimated to have U.S. brand and generic sales of approximately $3.1 billion for the 12 months ending in March 2016. The aggregate purchase price of $586 million for the portfolio of products will be funded with existing cash and $400 million in new fully committed term loans.

The Transaction is in connection with the divestiture process mandated by the Federal Trade Commission in connection with the acquisition by Teva of the U.S. generics business of Allergan. The Transaction is subject to customary closing conditions, including approval by the FTC of Impax as buyer of the assets and the closing of Teva's acquisition of Allergan's global generics business.

Impax has updated its full year 2016 financial guidance from its original issuance on February 22, 2016. Adjusted earnings per share is now expected to increase at least 20% over full year 2015 adjusted EPS. Previously it was expected to increase at least 10% over full year 2015 adjusted diluted EPS.

Total Company revenues are anticipated to increase at least 15% over full year 2015.