Join        Login             Stock Quote

Questcor Pharma (QCOR) To Buy Contract Manufacturing Services Supplier Biovectra

 January 02, 2013 04:30 PM

(By Balaseshan) Questcor Pharmaceuticals Inc. (NASDAQ: QCOR) said it has agreed to buy BioVectra Inc., a supplier of contract manufacturing services, for an upfront payment of C$50 million ($50.7 million).

BioVectra stakeholders could also receive additional cash consideration based on its financial results over the next three years.

Questcor expects the transaction to be immediately accretive to non-GAAP earnings.

BioVectra is a supplier of contract manufacturing services to the global pharmaceutical and biotechnology industry and manufactures active pharmaceutical ingredients (API's), chemical intermediates, and bioprocessing reagents.

[Related -Questcor Pharmaceuticals Inc. (QCOR): A Rare Double Play]

Located in Prince Edward Island, Canada, BioVectra has been Questcor's manufacturing partner for the API in Questcor's H.P. Acthar Gel (repository corticotropin injection) for nearly a decade.

The acquisition will enable Questcor to further secure the manufacturing process trade secrets surrounding Acthar. BioVectra will continue to operate independently in Prince Edward Island, under its existing management team and Questcor plans to support the continued growth of BioVectra's business.

BioVectra's capabilities include synthetic organic chemistry, natural extraction of bioactive compounds from plant and animal-based biomass sources, PEGylation and conjugation chemistry, and fermentation of a variety of molecule types.

BioVectra's facilities have been approved by United States and Canadian regulatory authorities to produce and supply intermediates, API's and drug substances. Questcor anticipates closing the transaction in January 2013.

[Related -Questcor Pharmaceuticals, Inc. (QCOR): Looking At Yesterday To See Tomorrow]

BioVectra had sales of about $28 million in its last fiscal year ended August 31, 2012, a 15% increase over its prior fiscal year.

QCOR closed Wednesday's regular session down 2.73% at $25.99. The stock has been trading between $17.25 and $58.91 for the past 52 weeks.

iOnTheMarket Premium


Post Comment -- Login is required to post message
Alert for new comments:
Your email:
Your Website:

rss feed

Latest Stories

article imageSavings Glut and Financial Imbalances

Martin Wolf in today's Financial Times discusses the reasons for low interest rates and suggests some read on...

article imageA Dividend Aristocrat Is Now On Sale

The bear market investors have been dreading is already here for many individual stocks. While the S&P 500 read on...

article imageTwo Picks to Play Defense in a Slowing Economy

Is the economy slowing? Last Thursday the Institute for Supply Management (ISM) reported that its read on...

article imageUS Jobless Claims Fall, Moving Closer To Multi-Decade Low… Again

US jobless claims continue to cast a positive glow on the outlook for the labor market. Today’s weekly read on...

Popular Articles

Daily Sector Scan
Partner Center

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.