United States biosimilar manufacturers, Impax Laboratories and Amneal Pharmaceuticals have announced a merger deal.
Impax Laboratories and Amneal Pharmaceuticals, two major US pharma organizations have announced that they are to merge. The two pharma giants have been working with generic pharma lawyers to finalize a deal.
The new organization will be called Amneal Pharmaceuticals. The company will boast a biosimilar operation that is widely predicted to rank by gross revenue as the fifth biggest organization of its type in the United States. Further growth and profitability is expected to be seen through a high-margin specialty franchise.
Impax’s specialty portfolio includes an impressive array of products, including:
• Parkinson’s medication Rytary
• headache medicine Zomig Nasal Spray
• pinworm treatment Emverm
• parasitic worm treatment Albenza
The combined organization will also have a very differentiated and broad pipeline in addition to its existing portfolio of commercial products. In total, over 300 products will be either filed with the United States FDA or under development. Amneal Pharmaceuticals, in its new form, currently has 150 abbreviated new drug applications that are currently pending. In addition, there are 165 other projects that are in the active stages of development. The portfolio is made more impressive by the fact that a notable number of the pharma company’s already marketed products currently hold first or second ranking in their respective relevant markets.
According to Paul Bisaro, who is President and Chief Executive Officer of Impax, the merger will create a much more diversified organization with one of the pharma industry’s primary high-value, biosimilar drug product pipelines together with a growing specialty business.
Merger transaction expected to generate annual cost savings to the new company
The transaction is fully expected to create at least US$200 million in cost savings each year within just three years of the new company’s formation, thanks to existing synergies between the two merging companies.
Amneal Holdings’ members will be awarded 75% of the new organization’s pro forma shares, while Impax Laboratories’ shareholders will get roughly 25% of the shares on an as-converted basis.