Japan's Generic Firm Nichi-Iko Pharma To Buy Sagent Pharma For $736 Mln

(RTTNews) - Nichi-Iko Pharmaceutical Co., Ltd, the largest generic drug manufacturer in Japan by sales, Monday announced that it has entered into a definitive merger agreement to acquire Sagent Pharmaceuticals, Inc. (SGNT) in an all-cash tender offer followed by a second-step merger, for a total consideration of approximately $736 million.

The merger agreement contemplates an all cash tender offer for $21.75 per share, followed by a second-step merger for stock not tendered in the Offer.

The acquisition price represents a premium of approximately 40.3% to Sagent''s closing price on July 8.

The transaction, which has been unanimously approved by the Nichi-Iko and Sagent Boards of Directors, is expected to close in the second quarter of Nichi-Iko's fiscal year ending March 2017, subject to customary regulatory approvals. Sagent will become a wholly owned subsidiary of Nichi-Iko

The deal enhances Nichi-Iko's platform in the U.S. market to commercialize its biosimilar product pipeline and increase its presence in injectables. Through the acquisition, Nichi-Iko will raise its profile in the domestic and international generics market and advance the company's goal of becoming a Top 10 global leader in generics.

Sagent will benefit from Nichi-Iko's portfolio of both biosimilars under development and injectable products, further enhancing its competitiveness in the U.S. market - the largest generic drug market in the world.

No changes to Sagent's current operations are currently anticipated and Nichi-Iko expects that Sagent's current management team will continue to lead Sagent from its headquarters in Schaumburg, Illinois.

In Japan, Nichi-Iko shares gained 4.86 percent to settle at 2,092 yen.