Horizon Therapeutics (NASDAQ: HZNP), a pharma company focused on rare, autoimmune and severe inflammatory diseases, has announced it has completed its acquisition of Viela Bio (NASDAQ:VIE) valuing the company at $3.05 billion.
In a statement commenting on the deal, Tim Walbert, the chairman, president and CEO of Horizon said that “With its deep, mid-stage biologics pipeline, strong R&D team and on-market medicine UPLIZNA®, Viela is a strong complementary strategic fit with our pipeline, commercial portfolio and therapeutic areas of focus.”
Further reflecting the fact that the acquisition is a long term bet on Viela’s pipeline, EBITDA is expected to be reduced by $140 million in 2021. The decline is in large part due to an increased research and development expense. However, if the company has success with some of the four therapeutics currently in the pipeline, the payoff could be meaningful.