Horizon Pharma Appears to Be on an Acquisition Spree
Horizon Pharma Beats 2Q15 Expectations
Horizon Pharma completes its acquisition of Hyperion Therapeutics
Horizon Pharma (HZNP), after acquiring Vidara Therapeutics on September 19, 2014, completed its second acquisition of Hyperion Therapeutics (HPTX) on May 7, 2015. As per the company’s press release, HZNP bought HPTX for ~$1.1 billion in cash. With the acquisition of HPTX, HZNP’s product line increased to seven products through the addition of RAVICTI and BUPHENYL. Horizon Pharma expects that these two products should generate revenue of around $100 million by 2016. For 2014, sales of these two products stood at $113.6 million.
As per the company’s release, HZNP is looking to acquire DepoMed (DEPO) for a value of ~$3 billion, which would mean a premium of ~42% of DEPO’s closing price as of July 6, 2015. However, DEPO rejected the offer, stating that the offered price was unattractive. Whether HZNP will offer a better price to acquire DEPO remains to be seen.
The above chart reflects HZNP’s performance from the beginning of the year until July 31, 2015. The stock has been giving positive returns every month and has given a return of ~183% since January.
About Horizon Pharma
Horizon Pharma (HZNP) is an Ireland-based company headquartered in Dublin. It focuses on treating rare diseases, and it has seven drugs under three different business units. Its market cap is ~$5.5 billion.
Investors can buy ETFs like the SPDR S&P Pharmaceuticals ETF (XPH) and the iShares Nasdaq Biotechnology ETF (IBB) to diversify their portfolios. IBB’s top holdings include Gilead Sciences (GILD), Celgene (CELG), and Amgen (AMGN). These stocks represent 8.46%, 7.23%, and 7.64%, respectively, of the fund’s portfolio.
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