US pharma giants to merge under $145m deal to tackle opioid overdose epidemic

Indivior, a US pharmaceutical heavyweight, has bought addiction and overdose treatment competitor Opiant Pharmaceuticals for $145m (£123m)

The FTSE 250 pharma firm is coughing up some $20.00 per share in cash upfront, Indivior said in a statement today. Plus, a further $8.00 a piece should revenue milestones be achieved over the next seven years.

Both boards have unanimously approved the takeover, which will strengthen Indivior’s addiction treatment division.  

The pair will target the addiction market in the US, where overdose deaths are at a near record high, Indivior CEO Mark Crossley said.

“The combination with Opiant will provide Indivior with one of the most comprehensive and relevant treatment platforms to address the ongoing US opioid and overdose epidemic and extends our leadership position in addiction treatments,” he added.  

While the deal has secured a green light from the board, the transaction awaits the approval of shareholders, as well as clearance by US antitrust officials.

Opiant’s overdose rescue treatment OPNT003, used for synthetic opioids such as fentanyl, is expected to have the potential for an annual net revenue of between $150m (£127m) and $250m (£212m), according to Indivior.

“Indivior seems to be creating an enhanced overdose treatment portfolio, by acquiring the likes of Narcan and OPNT003, so that it can use their commercial capacities to tackle the ongoing opioid crisis in the US,” Zhyar Said, healthcare analyst at pharmaceutical research company Citeline, said.

“Opiant seems to be counteracting this shortfall with an approval of OPNT003, a nasal nalmefene product, which is currently aiming to have an FDA approval in the third quarter of 2023.

“With nalmefene already being on the market, having a nasal delivery needs to show significance in the market, with Opiant recently seeking an extension of patent till 2037.

“The acquisition of this new formulation will certainly diversify Indivior’s portfolio.”