Sagent Pharmaceuticals bought by Japanese firm Nichi-Iko as shares climb
The drug maker rose 40% in pre-market trading after news of acquisition
- Deal amounts to $736mn in cash for Sagent as both boards back the transaction
Updated : 15:12
Sagent Pharmaceuticals was up 40% in pre-market trading after agreeing a deal with Japanese firm Nichi-Iko Pharmaceutical.
The acquisition will allow Nichi-Iko to expand its operations in the United States, paying $21.75 per share, 40% higher than its closing price on July 8, a statement from the companies confirmed.
“The U.S. market is a top priority for Nichi-Iko and we believe Sagent is an ideal partner to accelerate our international growth strategy," Yuchi Tamura, Nichi-Iko’s chief executive officer, said in the statement.
The Japanese company had previously only received revenue from its home country in the last fiscal year, and announced its intention to expand its reach.
It is thought that there will be no major changes to the operations of Sagent, according to their chief executive.
"The combination will maintain Sagent's current operations and valued employees while providing accelerated expansion of our product offerings and accessibility to a robust pipeline of biosimilar pharmaceuticals," said Sagent Chief Executive Allan Oberman.