UCB and Lannett Company, Inc.announced they have entered into a definitive agreement providing for the acquisition of UCB’s U.S. specialty generics subsidiary, Kremers Urban Pharmaceuticals Inc. ("KU"), by Lannett. UCB will receive upfront cash proceeds of US$ 1.23 billion upon closing, which is subject to regulatory approval and other customary closing conditions. In addition, UCB is eligible to receive contingent payments for methylphenidate HCI ER in the event that the product’s AB-rating is restored, allowing UCB to participate in potential upside in the product.
UCB plans to use the proceeds from this divestiture to reduce indebtedness and increase the company's capacity for strategic investments, to further accelerate growth and/or to further strengthen its innovative medicines pipeline.
The purchase price is payable to UCB in cash upon closing. This transaction announced today has been unanimously approved by both UCB's and Lannett’s Boards of Directors and is expected to close in the fourth quarter of 2015, subject to the satisfaction of customary closing conditions. The UCB 2015 financial outlook remains unchanged.
