(Alliance News) - Indivior PLC on Monday announced the acquisition of Opiant Pharmaceuticals Inc for around USD145 million.
Invidior, a Richmond, Virginia-based pharmaceutical firm, will pay USD20.00 per share in cash for Opiant, a Santa Monica, California-based biopharmaceutical company. It will pay an additional USD8.00 per share in contingent value rights if OPNT003 achieves certain revenue milestones during a seven-year period after its approval and launch.
OPNT003 is an investigational opioid overdose reversal agent that Opiant has been developing. It is expected to be accretive to Indivior's earnings after the second full year of launch.
Opiant is listed on Nasdaq in New York. Shares in Opiant closed at USD9.40 on Friday afternoon but were trading at more than double that price at USD20.65 pence each in pre-open trade on Monday morning.
Shares in Indivior were trading 0.9% higher at 1,669.00 pence each in London on Monday morning, giving the company a GBP2.26 billion market capitalisation.
Indivior Chief Executive Officer Mark Crossley said: "Our work in combatting addiction has never been more critical, with overdose deaths in the United States occurring at near record numbers. Opiant's portfolio of product candidates is an excellent strategic fit that diversifies and strengthens our offerings."
Opiant contributed to the development of the formulation of Narcan Nasal Spray, a treatment to reverse opioid overdose.
Narcan Nasal Spray is the current standard of care for opioid overdose rescue, according to Indivior, and had peak net revenue of over USD400 million in 2021. Indivior said the "unique clinical profile" of OPNT003 means it could deliver annual net revenue of USD150 million to USD250 million.
Opiant's pipeline includes OPNT002, nasal naltrexone, which is currently in a Phase II trial to assess its potential as a treatment for alcohol drinking and cravings, and OPNT004, a CB-1 antagonist in preclinical development as a potential injectable treatment for acute cannabinoid overdose.
The transaction is subject to customary closing conditions, including US antitrust clearance, clearance by the Committee on Foreign Investment in the United States and the approval of Opiant's shareholders.
Opiant's board members, who hold about 4.5% of Opiant shares, have agreed to vote their shares in favour of the transaction.
Pending approvals, the parties anticipate completing the transaction in the first quarter of 2023.
Crossley said "the combination with Opiant will provide Indivior with one of the most comprehensive and relevant treatment platforms to address the ongoing US opioid and overdose epidemic and extends our leadership position in addiction treatments. We look forward to working with Opiant's talented team as we undertake our shared mission of changing patients' lives through access to life-transforming treatment for substance use disorders."
By Chris Dorrell; chrisdorrell@alliancenews.com;
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Indivior (INDV)