Forest Laboratories to Acquire Aptalis

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Forest's planned acquisition of Aptalis will enhance its business in gastrointestinal and cystic fibrosis therapies.

Forest Laboratories has entered into a definitive agreement to acquire Aptalis, a privately held US-based specialty gastrointestinal (GI) and cystic fibrosis company, for $2.9 billion in cash from its shareholders, including TPG, the global private investment firm, Forest announced in a press release. Forest, headquartered in New York, is a specialty pharmaceutical company focused primarily on the US market in five therapeutic areas: central nervous system, cardiovascular, GI, respiratory, and anti-infective.

“Aptalis is an excellent strategic and financial fit for Forest because of its strong product offerings in two therapeutic franchises that are complementary to Forest - GI in the US and Canada and cystic fibrosis in Europe. The acquisition of Aptalis helps diversify Forest while advancing our strategy to create blockbuster therapeutic areas,” said Brent Saunders, CEO and President of Forest Laboratories. “Because there is such a strong fit, we expect to grow the sales of products from both Forest and Aptalis while realizing $125 million in cost synergies from combining the two companies. As a result, the acquisition is expected to add nearly $700 million in revenue and approximately $0.78 to our non-GAAP EPS in FY2015.”

Aptalis had sales of $688 million in fiscal year (FY) 2013 (ending Sept. 2013). Sales of its top three products in the US¬— Canasa (mesalamine), Carafate (sucralfate), and Zenpep (pancrelipase)—accounted for more than 60% of company sales in FY2013. International sales accounted for approximately 15% of revenues. Aptalis Pharmaceutical Technologies, a third-party delivery technology provider and drug manufacturer, accounted for approximately 15% of revenues.


The transaction is expected to close in the first half of 2014, pending regulatory review and satisfactory completion of necessary closing conditions.

Source: Forest Laboratories