Allergan Acquires Esprit Pharma
Allergan (AGN) said Wednesday it will acquire Esprit Pharma in a $370 million deal that expands its stance in the genitourinary market.
Allergan expects the all-cash transaction, in which it will pay $370 million for all outstanding securities of privately held Esprit, to close in the fourth quarter. The deal sparks a new licensing agreement with Indevus Pharmaceuticals (IDEV).
Esprit licenses from Indevus and currently markets twice-daily Sanctura, a treatment for overactive bladder -- OAB. The U.S. Food and Drug Administration recently approved an extended-release once-daily formulation, Sanctura XR. Allergan anticipates launching Sanctura XR in the first quarter and said it will increase Esprit's sales force.
Pending the close of the acquisition, Allergan said it expects Esprit will contribute revenue of $6 million to $12 million in the fourth quarter of 2007. With the launch of Sanctura XR and the increase in Esprit's sales force taken into consideration, Allergan believes the transaction will be dilutive by 4 cents to 6 cents a share, excluding items.Allergan said it still anticipates upper-teens earnings growth in 2008, based on the pretransaction 2007 guidance of $2.16 to $2.18 a share it provided with second-quarter results. The company said the transaction should be significantly accretive to earnings and revenue after 2008.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV