Sagent Pharmaceuticals has acquired Omega Laboratories Limited, a specialty pharmaceutical company based in Montreal, Canada. The combination of Sagent and Omega creates a generic injectable company with a robust product portfolio, deep development pipeline and strong global presence. The transaction closed on October 1, 2014, and is expected to be immediately accretive to cash earnings. Sagent acquired Omega for approximately US$85.3 million (C$95 million) in an all-cash deal financed by its strong balance sheet.
Omega has been providing the Canadian market with a comprehensive line of innovative pharmaceutical products since 1958. The company’s generic injectable and specialty pharmaceutical portfolios generally maintain leading positions in several niche markets across Canada. Over the last three years the company has produced a compound annual growth rate
(CAGR) of 22.6% and 2013 revenues were C$36.5 million. Omega also has strong export capabilities, currently marketing its 93 products in over
40 countries, in key markets such as Europe and Asia. In addition, Omega has an extensive pipeline, consisting of 26 generic injectable drugs scheduled to be launched between 2014 and 2019.
“Omega is a well-respected leader in the specialty pharmaceutical space, with a highly experienced management team, and a strong track record of developing and producing quality products,” said Jeffrey Yordon, Chairman and Chief Executive Officer of Sagent. “This acquisition marks a significant milestone in realizing our strategic vision to broaden our portfolio, expand our pipeline and extend our global footprint. Our combined diverse, highly complementary portfolio will result in significantly increased sales across the globe and create additional opportunities for meaningful growth.”
Mr. Yordon continued, “The transaction augments our operational capacity in the near-, and more importantly, long- term by leveraging our existing infrastructure and partner network to optimize production across a broader base while continuing the investment in expanding Omega’s manufacturing capabilities. This approach will fulfill growing demand for FDA approved facilities and products and maintain a consistent supply of quality products to the marketplace. The vertical integration component is complementary to our foundational partner model and supports the continuation of our growth trajectory.”
Francois Angers, President and Chief Executive Officer of Omega, added, “We are very excited to join the Sagent team. Together we have the resources, skills and capabilities to build a global leader in the generic injectable space. Importantly, this transaction supports our growth objectives by providing access to Sagent’s robust product portfolio and supporting our planned capacity expansion in Montreal. We look forward to continuing to build upon the strong growth momentum and solid infrastructure that has benefited both companies in recent years.”