Shareholders of Bridgewater-based Amneal Holdings will own approximately 75 percent of the combined company, with California-based Impax’s shareholders owning about 25 percent of the new company’s pro forma shares on an as-converted basis.
The new Amneal Pharmaceuticals Inc. will have a robust generics business that will rank as the fifth-largest in the United States by gross revenue, and a growing, high-margin specialty franchise.
It is expected to have pro forma adjusted earnings before interest, tax, depreciation and amortization of approximately $700 million to $750 million next year, including expected significant cost savings within the first full year of close.
The combined organization will have a diverse and differentiated pipeline, with more than 300 products either filed with the FDA or in active stages of development, a foundation for international expansion with select commercial presence in the United Kingdom and Germany, and cost-efficient global manufacturing and development capabilities in all dosage forms. The transaction is expected to enhance the combined organization’s competitive position and allow for continued success in an evolving generics market.
“In the 15 years since our family founded Amneal, we have established the company as a leader in the U.S. generic pharmaceuticals industry, and today marks an important milestone in these efforts,” said Amneal co-CEO and co-Chairman Chirag Patel. “This transaction combines the complementary strengths of both Amneal and Impax to create an even stronger company with the diversification, capabilities and resources to deliver enhanced value for patients, new opportunities for our collective employees and increased growth and value creation for shareholders.”
His partner, Chintu Patel, said they “are excited to join with Impax to create one of the most dynamic companies in the pharmaceutical industry. This combination will help us achieve our long-term goals of providing greater access to safe and affordable medicine for people around the world, while also positioning us for continued success.”
The new company hits key growth objectives for Impax, said CEO and President Paul Bisaro.
“By combining Amneal and Impax, we create a more diversified company with one of the industry’s leading high-value generic product pipelines and a growing specialty business,” Bisaro said. “Our combined portfolio will be supported by global, high-quality development and manufacturing capabilities.
The Patels will serve as co-chairmen of the combined company’s board of directors, with Bisaro as CEO.
Bryan Reasons, Impax’s senior vice president of finance and chief financial officer, will be the new company’s CFO, as well.
The combined company will have a generics portfolio with approximately 165 differentiated product families marketed in all dosage forms. It will hold a No. 1 or No. 2 position in a significant number of its marketed products.