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Nuvo Pharmaceuticals Inc., a healthcare company with a portfolio of commercial products and pharmaceutical manufacturing capabilities, today announced the signing of a letter of intent with Aralez Pharmaceuticals Inc. to acquire a portfolio of more than 20 revenue-generating products, as well as the associated personnel and infrastructure to continue the products' management and growth (the Proposed Transaction).

Assuming completion of the Proposed Transaction, Nuvo's pro forma 2017 revenues would have been approximately 4x higher than reported for fiscal 2017 and 2017 pro forma adjusted Ebitda would have been approximately 10x higher than that reported for fiscal 2017. The letter of intent contemplates Nuvo paying Aralez $110 million in cash at closing, which Nuvo expects to be satisfied through funding provided by certain funds managed by Deerfield Management Company, L.P. (Deerfield), a leading, global, healthcare-specialized investor. Deerfield is also the senior secured lender to Aralez. All references to dollars are in Canadian dollars, unless otherwise specified.

Under the terms of the Proposed Transaction, Nuvo would acquire Aralez's Canadian specialty pharmaceutical business, which was formerly known as Tribute Pharmaceuticals Canada Inc. This is a growing business that includes Cambia, Blexten, Suvexx (sold as Treximet in the USA), as well as the Canadian distribution rights to Resultz, and would create a platform for Nuvo to acquire and launch additional commercial products in Canada. The purchase would also include the worldwide rights including royalties from licensees for Vimovo and global, ex-U.S. product rights to MT400 (to be sold as Suvexx in Canada once registered and currently commercialized in the USA as Treximet). 

Jesse Ledger, CEO of Nuvo commented, "The Proposed Transaction would be transformative for Nuvo. It provides critical mass, an expanded platform for future growth, diversifies our revenue streams and significantly increases our projected revenue and adjusted Ebitda. We anticipate that Deerfield will provide us not only with financing but also with access to its expertise, relationships and potential opportunities for future growth."

(Source: Nuvo Pharmaceuticals Inc.

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