Pharmacy

Jun 25 2017

Horizon Pharma to buy Lake Forest company for $510 million – Chicago Tribune #biotechnology #industry

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Horizon Pharma to buy Lake Forest company for $510 million

Fast-growing Horizon Pharma is spending $510 million to buy Crealta Holdings, of Lake Forest, which makes the only approved medicine for chronic refractory gout, a disorder that affects about 50,000 Americans.

The definitive agreement, announced Friday, is the latest move by Horizon to become a major pharmaceutical player, primarily through acquisitions. The company said last month its sales will double in the next four years, led by its orphan drug business. Orphan drugs, which treat rare diseases, often command high prices and profits.

Horizon Pharma expects sales to hit $2 billion in 4 years

Shares in Illinois biotech Horizon Pharma soared as much as 11 percent Monday after the company said it expects sales will double in the next four years, led by its orphan drug business. Orphan drugs, which treat rare diseases, often command high prices and profits.

Horizon told investors that total.

Shares in Illinois biotech Horizon Pharma soared as much as 11 percent Monday after the company said it expects sales will double in the next four years, led by its orphan drug business. Orphan drugs, which treat rare diseases, often command high prices and profits.

Horizon told investors that total.

In recent months, orphan drugs have drawn heavy scrutiny from lawmakers who are investigating companies such as Turing Pharmaceuticals and Valeant Pharmaceuticals that buy the drugs and then raise prices sharply, while not developing drugs on their own.

Horizon has a similar track record. Last year, Horizon spent just 6 percent of its sales on research and development, far below the industry average of 18 percent.

Horizon said in October it would move its U.S. headquarters from Deerfield to Lake Forest in January and triple its workforce, to 600 employees in four years.

By buying Crealta, Horizon will pick up its premier drug, Krystexxa, an orphan drug approved for adults who have tried or cannot take oral gout medications and still have high uric acid levels. The drug has been used by about 5,000 people since hitting the market in 2010. Horizon said the deal would add up to $80 million a year in sales.

Horizon moved its world headquarters to Ireland last year, in part to lower its tax bill. It did that by buying Irish pharmaceutical company Vidara Therapeutics International for $587 million. Earlier this year, Horizon bought Hyperion Therapeutics of Brisbane, Calif. for about $1.1 billion. That acquisition added two rare-disease drugs to Horizon’s portfolio that treats urea cycle disorders. The drugs, Ravicti and Buphenyl, had $113.6 million in sales last year.

Last month, Horizon called off its $1 billion hostile takeover of Depomed, a California pharmaceutical company, after a court ruled that Horizon misused confidential information in its takeover attempt.

A version of this article appeared in print on December 12, 2015, in the News section of the Chicago Tribune with the headline “Horizon to scoop up another drugmaker – Lake Forest’s Crealta will sell for $510M” Today’s paper Today’s paper | Subscribe

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