Mylan is splashing out $550 million in cash to buy the privately-held Irish firm Bioniche Pharma Holdings in a move that will give the generics major “immediate entry into the North American injectables market”.

Bioniche, which is based in Galway, has been owned by US private equity firm RoundTable Health Partners since the beginning by 2006. It had revenues of around $130 million for the year ended May 31, most of which were derived in the USA. commercial marketplace.

The company sells some 30 products across several therapeutic areas for the hospital setting, including analgesics/ anaesthetic, orthopaedics, oncology and urology. In addition, Bioniche has made “significant investments in its pipeline that are expected to drive robust future growth”, which includes 15 Abbreviated New Drug Applications pending approval at the US Food and Drug Administration.

Mylan chief executive Robert Coury said the firm is buying “a complementary, high growth, high margin business” which has “maintained a long-held strategy of focusing on quality injectable products with limited competition and difficult-to-develop and manufacture compositions”. He added that “with this one transaction, we will have acquired the necessary critical mass to compete in the attractive US injectables market as well as the ability to even further leverage this business throughout the rest of our global commercial platform”.

Mylan noted that it will not assume any of Bioniche's outstanding debt or acquire its cash. The deal is expected to close in 60 days and is expected to be accretive to Mylan's earnings in year one, “without accounting for any operational or other synergies”.