Galenica Group recently announced that it has entered into a definitive agreement to acquire the US company Relypsa, Inc., (NASDAQ: RLYP), further strengthening its Business unit Vifor Pharma by gaining full global rights to the potassium binder Veltassa® (patiromer) for oral suspension and enhancing its growing position as a global specialty pharmaceutical company.
Under the terms of the merger agreement, Galenica will pay $32 per share in cash, or a total of approximately $1.53 billion. Through this acquisition, Vifor Pharma will gain a fully integrated commercial organisation in the US and significantly strengthen its presence in the US cardio-renal market, a key area of focus.
The transaction is in line with the Galenica strategy of growth through in-licensing and acquisitions that build on Vifor Pharma’s emerging international leadership in cardiorenal and gastroenterology therapies. It provides Vifor Pharma with full global rights to Veltassa®, the first new treatment for hyperkalaemia approved in the US in over 50 years. It will also significantly enhance the commercial visibility and presence of Vifor Pharma in the key US cardio-renal market, where Relypsa has already established a significant and powerful specialist sales force. With the combination of the assets and products of Vifor Pharma, Vifor Fresenius Medical Care Renal Pharma (VFMCRP) and Relypsa, Vifor Pharma is positioned to become a major player in the US in its core therapy areas.
Galenica has been advised by law firm Kellerhals Carrard, with a team led by Partner Beat Brechbühl, and also by law firm Jones Day, which is also providing antitrust and employee benefits advice regarding this deal.
Credit Suisse acted as sole financial adviser to Galenica, and the company’s tax advisers were T&R. Relypsa has been advised by law firm Latham Watkins, with Centerview and BofA Merrill Lynch as financial advisers. Further, Baker & Mckenzie acted as legal adviser to the equity provider.