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Mylan to Buy Aspen Pharmacare's Thrombosis Business in Europe

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Mylan N.V. announced an agreement to acquire Aspen Pharmacare Holdings Limited's thrombosis business in Europe for €641.9 million.

The portfolio consists of well-established injectable anticoagulants sold in Europe under the brand names — Arixtra, Fraxiparine, Mono-Embolex and Orgaran. These products accounted for combined net sales of approximately €231 million for the 12 months ended Jun 30, 2020.

The transaction is expected to be immediately accretive to Mylan upon closing. Upon closing of the transaction, Mylan expects to fund an upfront payment of €263.2 million to Aspen from existing cash. In addition, Mylan will use the cash generated from operations to make the final deferred payment of €378.7 million on Jun 25, 2021. The closing of the proposed sale is expected to be completed before the year-end.

Aspen will retain manufacturing and product supply responsibilities and supply Mylan with finished products.

The acquisition is also expected to be accretive to Viatris upon the completion of Mylan's previously announced combination with Pfizer’s (PFE - Free Report) Upjohn that is expected to close in the fourth quarter of 2020.

The acquisition of this thrombosis portfolio will broaden Mylan's European business and make it the second-largest supplier of these products to patients in Europe. It complements and expands Mylan's complex injectables offering and presence in hospitals.

Mylan’s stock has lost 23.9% in the year so far compared with the industry’s decline of 12.6%.

Last month, the company reported second-quarter results, wherein earnings and revenues beat estimates. The coronavirus outbreak and the subsequent lockdown negatively impacted customer buying patterns. However, Wixela Inhub, the generic of GlaxoSmithKline’s (GSK - Free Report) Advair Diskus, and Yupelri, developed in collaboration with Theravance Biopharma (TBPH - Free Report) , continued to boost growth.

Mylan currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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