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

|About: AstraZeneca Group plc (AZN)|By:, SA News Editor

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)