Medicure Inc (TSX-V: MPH) has sold its interest in Apicore Inc, a U.S. developer and maker of active pharmaceutical ingredients and pharmaceuticals, to an unidentified buyer. The sale will provide the Winnipeg specialty pharmaceutical company with net proceeds of about US$105 million. Medicure acquired Apicore over 2014-2017, assuming a majority position last year with the help of a $60 million loan provided by Canadian specialty finance firm Crown Capital Partners and the Ontario Pension Board. Prior to then, Signet Healthcare Partners and other investors helped fund the acquisition.
Medicure Announces Sale of Apicore Business
WINNIPEG, Oct. 3, 2017 /CNW/ – Medicure Inc. (“Medicure” or the “Company”) (TSXV:MPH, OTC:MCUJF), a specialty pharmaceutical company, today announced that it has sold its interests in Apicore to an arm’s length, pharmaceutical company (the “Buyer”).
Medicure acquired Apicore in a series of transactions occurring between July 3, 2014 and July 12, 2017 and had obtained a CDN$60 million loan towards these purchases. Under the transaction, Medicure will receive net proceeds of approximately US$105 million. These funds to be received by the Company are after payment of all transaction costs, the cashing in of Apicore employee stock options, the redemption of the remaining shares of Apicore not owned by Medicure and other adjustments. Over the next 18 months, additional payments may be payable under the agreement, in the form of contingent payments, including an earn out payment based on the achievement of certain financial results by Apicore following closing and other customary adjustments.
“We are very pleased with our return on investment in Apicore”, stated Medicure’s President and Chief Executive Officer, Dr. Albert D. Friesen. The Company intends to use the proceeds from the sale to retire its approximately CDN$61 million long-term debt, pay the required debt pre-payment fees, pursue the acquisition of additional commercial cardiovascular products and further advance its product development pipeline.
This transaction constitutes a Reviewable Transaction under the policies of the TSX Venture Exchange (the “Exchange”). The transaction has been approved by the Exchange and as required by the policies of the Exchange has also been approved by the written consent of shareholders holding more than 50% of the issued shares of Medicure.
About Medicure Inc.
Medicure is a specialty pharmaceutical company focused on the development and commercialization of therapeutics for the U.S. hospital market. The primary focus of the Company is the marketing and distribution of AGGRASTAT (tirofiban hydrochloride) in the United States, where it is sold through the Company’s U.S. subsidiary, Medicure Pharma, Inc. For more information on Medicure please visit www.medicure.com.
Apicore is a private, New Jersey based developer and manufacturer of specialty Active Pharmaceutical Ingredients (“APIs”) and pharmaceuticals, including over 15 Abbreviated New Drug Applications (“ANDAs”), one of which, is partnered with Medicure. Apicore manufactures over 100 different API’s, including over 35 for which Drug Master Files have been submitted to the FDA and 16 that are approved for commercial sale in the U.S. by customers of Apicore. Apicore specializes in the manufacture of difficult to synthesize, high value and other niche API’s for many U.S. and international generic and branded pharmaceutical companies. Apicore has two FDA-approved facilities. In the U.S., the Somerset, New Jersey facility can produce a few grams up to 200 kg volumes and in India, the Vadodara, Gujarat facility can produce a few kilograms up to 60 metric tons yearly. Both facilities are equipped with state-of-the-art analytical and research capabilities. For more information, please visit Apicore online at www.apicore.com.
To be added to Medicure’s e-mail list, please visit:
For further information: James Kinley, Chief Financial Officer, Tel. 888-435-2220, Fax 204-488-9823, E-mail: email@example.com, www.medicure.com
Photo courtesy of Apricore Inc