Clinigen acquires Idis to create new leader in unlicensed medicines
This article was originally published in Scrip
UK pharma service provider Clinigen is to acquire Idis for £225m to create a new market leader in the supply of unlicensed ethical medicines. Weybridge, UK-based Idis supplies unlicensed medicines mainly on an exclusive basis through managed access programs and on-demand through its general access division. It had unaudited revenues of £196.8m and adjusted EBITDA of £15.6m for the 12 months ended 28 February 2015. Clinigen says the deal will be immediately accretive and should significantly enhance earnings in the first year and further in 2017. It has also identified annual cost synergies from the acquisition of approximately £2.5m million, and believes that opportunities for further revenue and cost synergies are likely to be identified. The acquisition will be funded by a vendor placing to raise £135m and by £104m drawn from new debt facilities. Clinigen CEO said: "This acquisition satisfies a number of our key strategic goals – achieving the market leader position in the $5bn+ unlicensed medicine supply sector and strengthening our leading position in the $2bn clinical trial supply market."