ANI Pharmaceuticals To Acquire Beta-Blocker
Baudette-based ANI Pharmaceuticals Inc. continues to expand its product portfolio. On March 11, ANI announced that it had a deal to acquire Inderal LA, a beta-blocker used to treat hypertension, migraines and other conditions, from New Jersey based-Cranford Pharmaceuticals LLC.
Pharmaceutical manufacturer ANI previously completed two acquisitions for six new products totaling $85 million since the beginning of the year. In February, ANI reported its 2015 revenues were $76.3 million, marking a 36 percent increase from 2014. The company posted a net profit of $15.4 million in 2015.
ANI generates more than 70 percent of its sales from generic pharmaceuticals. During 2015, ANI sold $55.2 million in generic pharmaceuticals and $11 million in branded medications. The company also generates revenue through contract manufacturing and other services.
Last year, TCB took an in-depth look at ANI, which is based in a small town in northern Minnesota. ANI went public through a reverse merger in 2013.
While the company’s revenues are growing, its stock has been dropping. ANI’s stock closed at $34.68 per share on Tuesday. A year ago, the stock was trading at $66.55 per share. The company’s 2015 earnings were down 46.5 percent from the previous year.
In its February announcement of its fourth quarter and year-end results, ANI provided guidance for the year ahead by projecting revenue in the range of $105 million to $120 million for 2016.
But the Inderal deal could boost those numbers.
In a statement announcing the pending acquisition, ANI’s president and CEO Art Przybyl said, “The acquisition, which is consistent with our strategy of pursuing limited competition generic products and mature brands, will be material to our revenue and EBITDA in 2016. We plan to provide updated financial guidance upon closing the transaction.”
The deal is expected to close in the second quarter. Once the transaction is complete, “ANI will immediately begin distributing Inderal LA as well as the authorized generic propranolol ER.” According to industry data, the two drugs accounted for $30 million in combined sales in 2015.