ANI Pharmaceuticals is doubling down on its rare diseases business — deemed its biggest driver of future revenue — by acquiring Georgia-based Alimera Sciences for $381 million.
ANI Pharmaceuticals bolsters rare disease business with $381M acquisition
Alimera Sciences makes two eye drugs, Iluvien and Yutiq, that ANI CEO Nikhil Lalwani said would add $105 million of projected revenue this year.
The Minnesota Star Tribune
June 24, 2024 at 11:31PM
Alimera focuses on vision issues, and its two commercial products, Iluvien and Yutiq, treat diabetic macular edema and chronic non-infectious uveitis, respectively. In 2024 alone, these drugs would add $105 million to ANI’s projected revenue.
“Late last year, we identified ophthalmology as a key strategic therapeutic area for the company and, in the first quarter of 2024, expanded our rare disease team to promote [cortrophin gel] to ophthalmologists,” said ANI CEO Nikhil Lalwani in a statement. “Alimera represents what we believe is a highly synergistic complement to this newly established specialty and will leverage our existing rare disease infrastructure.”
Baudette-based ANI — which makes a combination of generic and branded medications — created its rare disease unit by launching sales of cortrophin gel to treat inflammation from autoimmune conditions in January 2022.
The deal calls for ANI to pay $5.50 per share for Alimera when the transaction closes late in the third quarter of this year, but there is a future potential cost of $0.50 per share should the company achieve certain revenue targets in 2026 and 2027.
Alimera CEO Rick Eiswirth said in a statement this acquisition “recognizes the value ... at Alimera and creates compelling value” for shareholders.
“This complementary transaction creates a bigger platform to leverage our global infrastructure and outstanding team,” Eiswirth’s statement read.
ANI posted sales of $486.8 million for 2023, a gain of 53.9% from the prior year. That helped it to a net profit of $18.8 million compared to a net loss of $47.9 million in 2022. Rare disease pharmaceuticals accounted for $112.1 million in sales last year, 23% of the company’s overall revenue.
As of January, ANI had 642 employees. Alimera has approximately 160 employees.
The Birds Eye plant recruited workers without providing all the job details Minnesota law requires.
