Emergent BioSolutions will acquire Adapt Pharma and its flagship product NARCAN (naloxone HCl) Nasal Spray, which treats opioid overdoses.
NARCAN is the only needle-free treatment of naloxone approved by the U.S. Food and Drug Administration (FDA) and Health Canada. It is an emergency treatment for an opioid overdose as manifested by respiratory and/or central nervous system depression.
Emergent is paying $735 million including upfront payment of $635 million and up to $100 million in cash for potential sales-based milestones through 2022. It is subject to various approvals. Once it goes through Emergent will bring on approximately 50 employees, located in the United States, Canada, and Ireland.
“The acquisition of Adapt Pharma, and with it the NARCAN Nasal Spray, the leading community use emergency treatment for opioid overdose, is directly in line with our mission – to protect and enhance life,” Daniel Abdun-Nabi, CEO of Emergent BioSolutions, said. “Adding this important life-saving product to our portfolio of preparedness solutions allows us to apply our experience gained from two decades of partnering with the U.S. government to safeguard public health against biological and chemical threats to address the devastating increase in deaths due to opioid overdoses, one of the most serious public health threats facing the nation today.”
This transaction supports Emergent’s strategy to grow through the acquisition of products and businesses that align with its focus on public health threats.
“I am delighted that this transaction will bring Adapt and Emergent together to focus on the opioid crisis – the leading public health issue of our time,” Seamus Mulligan, chairman and chief executive officer of Adapt, said. “With a shared mission of protecting lives from public health threats, I am confident that our combined expertise and resources will accelerate access to NARCAN Nasal Spray through investments in public awareness and manufacturing capacity while maintaining a responsible pricing approach. It will also allow us to progress Adapt’s R&D pipeline of additional opioid overdose and addiction treatment options. To maintain the outstanding momentum our team has generated, Adapt will continue to focus on the opioid crisis as part of Emergent’s devices business unit and all employees and facilities will be retained.”
NARCAN Nasal Spray received FDA approval in November 2015 and became commercially available in early 2016. Health Canada approved it in October 2016.
“According to the Centers for Disease Control and Prevention, in 2016, there were approximately 42,000 deaths in the U.S. due to opioid overdose,” Doug White, senior vice president and head of Emergent’s devices business unit, said. “The U.S. government has declared the opioid crisis a public health emergency and has identified the availability and distribution of overdose-reversing drugs, such as NARCAN Nasal Spray, as one of the strategies to combat this crisis. We are committed to further expanding awareness and availability of NARCAN Nasal Spray as a convenient, easy-to-administer emergency treatment by leveraging the combination of Adapt Pharma’s efforts with state and local governments, first responders, pharmacies, and other channels, with Emergent’s 20-year track record as a trusted partner to the Federal government.”
Emergent also acquired PaxVax in recent months. PaxVax develops vaccines for typhoid and cholera.