Seeking Alpha

Horizon to buy U.S. rights to AstraZeneca's Vimovo tablets

  • Horizon Pharma (HZNP) has agreed to acquire the U.S. rights to arthritis-pain tablets Vimovo from AstraZeneca's (AZN).
  • Horizon will pay $35M up front and royalties to Pozen (POZN), which owns patents that cover Vimovo.
  • Horizon expects the transaction to "significantly increase" its revenues and accelerate the company's time to profitability, with the company forecasting a non GAAP profit next year vs consensus for a loss of $0.04.
  • Horizon estimates revenue of $190-205M, well above Street predictions of 157.55M,
  • The company will host a conference call at 8 am ET to provide further details. (PR)
  • Horizon is also issuing $150M in five-year convertible senior notes that carry interest of 5%. The company will use some of the proceeds to finance the Vimovo deal and to repay existing debt. (PR)
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