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Concordia Healthcare is snatching up Covis Pharma's pharma and injectables units for $1.2 billion in cash, beefing up its generics portfolio and riding the recent wave of pharma M&A.
Toronto, Canada-based Concordia will win 18 branded and generic drugs in the deal, including Nilandron for metastatic prostate cancer; Lanoxin for mild-to-moderate heart failure and atrial fibrillation; and Plaquenil for lupus and rheumatoid arthritis. The company expects the buy to add more than 50% to adjusted earnings this year, with the help of $20 million worth of postmerger cost cuts.
While the deal will have an "immediate and material impact" on Concordia's pocketbook, the acquisition also creates "greater scale and diversification" for the company, supporting its "aggressive growth plans," CEO Mark Thompson...