Horizon Buys Rare-Disease Company Raptor for $800 Million

Updated on
  • Deal will add Procysbi, Quinsair to Horizon portfolio
  • Transaction expected to close in fourth quarter of 2016

Horizon Pharma Plc agreed to buy Raptor Pharmaceutical Corp. for about $800 million to bolster its rare-disease treatment business and expand internationally.

Horizon will pay $9 a share in cash, about 21 percent more than Raptor’s closing price on Friday of $7.45, the companies said Monday in a statement. The transaction is expected to close in the fourth quarter of 2016, and should add to earnings next year, they said.

As part of the deal, Horizon gains Procysbi, a treatment for nephropathic cystinosis, a rare metabolic disorder, as well as Quinsair, which is given to cystic fibrosis patients. Raptor’s previously disclosed total net sales guidance for full-year 2016 is $125 million to $135 million, which includes both Procysbi and Quinsair.

Novato, California-based Raptor gained 20 percent to $8.94 at 9:01 a.m. in early trading in New York. The stock had advanced 43 percent this year through Friday. Horizon, which is domiciled in Dublin, Ireland, with corporate offices in Lake Forest, Illinois, was little changed.

Horizon will fund the purchase through $675 million of debt along with cash on hand, according to the statement. MTS Health Partners LP and Citigroup Inc. were Horizon Pharma’s main advisers on the transaction. Horizon Pharma’s legal advisers were Cooley LLP and McCann FitzGerald. Centerview Partners LLC and Leerink Partners LLC advised Raptor, while Latham & Watkins LLP provided legal advice.

The companies are holding a conference call beginning at 8 a.m. New York time Monday to discuss the deal.

— With assistance by Zachary Tracer

(Updates with shares in the fourth paragraph.)
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