Lannett completes Kremers Urban acquisition

PHILADELPHIA — Lannett on Friday announced that it had completed its $1.23 billion acquisition of specialty generics company Kremers Urban Pharmaceuticals. 

 

As part of the deal, Lannett issued $200 million senior unsecured notes and 2.5 million warrants to Kremers Urban parent company UCB US, which is also eligible to receive contingent payments for methylphenidate HCI ER once the drug’s AB rating is restored. 

 

“We are pleased to complete this transformational transaction that further establishes Lannett as a premier specialty pharmaceutical company,” Lannett CEO Arthur Bedrosian said. “KU is a highly profitable business that extends our size, scale and reach. With the acquisition, we have expanded and strategically diversified our product portfolio and pipeline, and added complementary research and development expertise.”

 

The company said it would provide a full-year guidance for fiscal 2016 in mid-December. The combined company’s revenue for the 12 months ended June 30 exceeded $800 million, and Lannett adds Kremers Urban’s 18 released products and its pipeline to Lannett’s portfolio.