Pharma BD Deal Intelligence

Horizon Pharma plc / Raptor Pharmaceutical Corp.

2016 · Acquisition/Merger · $860M · Complete

CALLED IT — OFF BY 17

One durable niche orphan drug (Procysbi) justified a fraction of the price; the rest of what was paid for (Quinsair, Raptor's pipeline) evaporated within a year or two of close.

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The coverage arc

Sep 12, 2016 Fierce Biotech Neutral

Fierce Biotech flagged that while the deal expanded Horizon's rare-disease franchise, Raptor's pipeline had suffered repeated clinical failures (notably the…

Sep 13, 2016 Pharmacy Times Bullish

Pharmacy Times framed the deal as accelerating Horizon's transformation into a rare-disease specialist, with Procysbi adding a long-tail patent-protected…

Oct 01, 2018 Cystinosis Research Foundation Bearish

The patient foundation that funded early Procysbi research criticized post-acquisition pricing — the drug launched at ~$300K/yr in 2013 and reached >$1M/yr for…

Source summaries from our enrichment pipeline; follow links for originals.

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Horizon Pharma agreed to acquire Raptor Pharmaceutical for $9.00/share cash (~$800M equity, ~$860.8M total including debt repayment). Adds PROCYSBI (cysteamine for nephropathic cystinosis) and QUINSAIR (inhaled levofloxacin for CF, EU only) to Horizon's rare-disease portfolio. Closed October 25, 2016.

Did it work? Outcome assessment

One durable niche orphan drug (Procysbi) justified a fraction of the price; the rest of what was paid for (Quinsair, Raptor's pipeline) evaporated within a year or two of close.

Strategic verdict
Partially Achieved
Financial impact
Accretive
Pipeline outcome
Mixed

Key facts

Related deals — scored

DealYearValueOutcome
Horizon Pharma plc / Raptor Pharmaceutical Corp. (this deal)2016$860M46
Horizon Pharma plc / Crealta Holdings LLC2015$510M87
Horizon Pharma plc / Hyperion Therapeutics, Inc.2015$1.1B79
Pfizer Inc. / BioNTech SE2020$748M100
Gilead Sciences Inc. / Pharmasset Inc.2011$11.2B98
Abbott Laboratories / Alere Inc.2016$5.8B95
bioMerieux SA / BioFire Diagnostics Inc.2013$485M88

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