Bora Pharmaceuticals has announced that its board of directors has approved the acquisition of all shares of Pyros Pharmaceuticals Inc., a rare disease drug development company based in New Jersey, USA. The acquisition aims to obtain key rare disease brand medications from Pyros, with a transaction price of $27.25 million, expected to be completed in the fourth quarter of this year. Bora stated that the rare disease product portfolio acquired through this equity purchase would not only effectively expand Bora Group's product channels in the U.S. market but also reduce its previous revenue reliance on generic drugs. This acquisition is expected to assist in transforming the business model into one with patent-protected brand advantages, establishing a long-term competitive niche for its global sales operations.
Founded in 2017 by Michael Smith and Edwin Urrutia, Pyros Pharmaceuticals is a U.S.-based specialty pharmaceutical company focused on developing treatments for rare diseases and serving unmet patient needs. The company is currently concentrating its research efforts on rare neurological diseases affecting infants, with key brand products including VIGAFYDE oral solution and VIGPODER oral powder solution, both of which are first-line treatments for Infantile Spasms, suitable for infants over one month and under two years of age. Notably, the VIGAFYDE oral solution received FDA approval in June of this year and officially launched in September.
The VIGAFYDE oral solution is the first ready-to-use liquid formulation of vigabatrin and the first drug approved by the FDA in 15 years for treating Infantile Spasms under the 505(b)(2) new drug application process, also receiving Orphan Drug Designation. Currently, it is the only ready-to-use product that does not require reconstitution prior to administration, providing a simpler dosing process for infants with Infantile Spasms and their caregivers.
Regarding this acquisition, Bora Group’s Chairman and CEO Bobby Sheng stated that acquiring Pyros is a key strategic move to strengthen Bora Group's competitive advantages in global sales operations. Leveraging Upsher-Smith's long-standing brand recognition and operational experience in pediatric neurology, Bora will be able to continuously enhance its brand portfolio, expand sales channels, and improve profitability, establishing a leading global position in the prescription drug sector. The Upsher-Smith team will collaborate with Pyros’s commercial products and team to provide comprehensive support to more patients suffering from rare diseases.
Michael Smith, co-founder and CEO of Pyros, expressed excitement about reaching this agreement, noting that both Bora and Pyros share a corporate vision dedicated to supporting rare disease patients and their families, accompanying them throughout their treatment journeys.
Following the completion of the Upsher-Smith acquisition in the second quarter of this year, Bora has successfully entered the U.S. brand generic drug market with its pediatric neurology medication, VIGADRONE (vigabatrin) oral suspension, along with a well-established specialty pharmacy channel. VIGADRONE is not only the fastest-growing and most profitable product in Upsher-Smith's portfolio but also solidifies Bora's key position in the pediatric rare disease medication market. This move expands the target market of its global sales operations to include the 505(b)(2) new drug category, making it the only pharmaceutical company in the U.S. market with both a vigabatrin oral suspension and a ready-to-use vigabatrin liquid formulation.
In addition to its existing indication for Infantile Spasms, Pyros is continuing to research other similar rare neurological disease indications and is pursuing drug approvals in these areas, aiming to effectively target the orphan drug market through its established channels and experienced sales team.
Bora's acquisition of all shares of Pyros has a transaction price of $27.25 million, with a per-share amount of approximately $1.11 (around NT$35.72). According to the terms of the signed agreement, additional payments may be made post-closing based on the performance of VIGAFYDE. If the FDA approves any increases or grants specific sales milestones, Bora may pay milestone amounts ranging from $5 million to $27.75 million. Payments will continue for up to nine years post-closing, based on U.S. domestic sales and international net profit, calculated at specific ratios.
The acquisition was advised by Stifel as financial advisor for Bora Group, with legal counsel provided by Gibson, Dunn & Crutcher LLP. Pyros was advised by Piper Sandler as its financial advisor, and legal counsel was provided by Cooley LLP.
Resource (mandarin): 保瑞業務版圖再壯大，以2725萬美元收購美Pyros取得小兒神經罕病品牌藥
