US biopharmaceutical firm Questcor Pharmaceuticals Inc (NASDAQ:QCOR) said it had inked a definitive accord to buy Canadian BioVectra Inc, a provider of manufacturing services to the pharmaceutical and biotechnology sector.
Questcor will acquire all issued and outstanding shares of BioVectra for an upfront consideration of CAD50m (USD50.7m/EUR38.6m), using available cash. It may also pay up to a further CAD50m, based on BioVectra’s financial performance over the next three years.
The transaction, which is expected to be wrapped up this month, is seen to have immediate positive impact on Questcor’s non-GAAP earnings, Questcor said.
BioVectra has been a manufacturing partner for the active pharmaceutical ingredient for Questcor’s H.P. Acthar Gel and its takeover is seen to additionally secure the manufacturing process trade secrets around the product as well as enhance Questcor’s capacity to address the rising demand for it. The move also brings know-how and positions the buyer for international growth, its CEO, Don Bailey, noted.