(Reuters) – Italian pharma group Recordati said on Friday it would buy from Sanofi the global rights to a drug used to treat cold agglutinin disease (CAD), a rare autoimmune disorder, for $825 million.
The deal includes additional commercial milestone payments of up to $250 million and will be completed by year-end, subject to regulatory approval, the Italian company said.
CAD is a rare B-cell lymphoproliferative disorder characterized by the premature destruction of red blood cells.
Recordati said it had signed an agreement for the rights to Enjaymo, a biologic which is the only targeted product for the treatment of CAD approved by the U.S. Food and Drug Administration (FDA).
It said it would fund the acquisition with existing cash and new committed bank debt facilities, expecting net debt at about 2.4-2.5 times its pro-forma core earnings (EBITDA) in 2024 and 2.0 times pro-forma EBITDA in 2025.
Its dividend and capital allocation policy remain unchanged, Recordati added.
(Reporting by Alessandro Parodi in Gdansk; Editing by Alvise Armellini and Mark Potter)
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