SOURCE: Horizon Pharma plc

Horizon Pharma plc

January 12, 2016 07:00 ET

Horizon Pharma plc Raises Full-Year 2016 Net Sales and Adjusted EBITDA Guidance Based on Expected Close of the Crealta Holdings LLC Acquisition

Raises Full-Year 2016 Net Sales Guidance to $1.025 to $1.050 Billion; Raises Full-Year 2016 Adjusted EBITDA Guidance to $505 Million to $520 Million; Hart-Scott-Rodino Waiting Period Expired Effective as of Midnight on January 11, 2016; Acquisition Expected to Close This Week

DUBLIN, IRELAND--(Marketwired - Jan 12, 2016) - Horizon Pharma plc (NASDAQ: HZNP), a biopharmaceutical company focused on improving patients' lives by identifying, developing, acquiring and commercializing differentiated and accessible medicines that address unmet medical needs, today raised full-year 2016 net sales and adjusted EBITDA guidance as a result of the expected close of the Crealta Holdings LLC acquisition this week. The waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 expired effective as of midnight on January 11, 2016.

As previously announced on December 11, 2015, Horizon entered a definitive agreement to acquire Crealta Holdings LLC for $510 million in cash, which adds the biologic medicine KRYSTEXXA (pegloticase) to the Company's portfolio. The acquisition is structured as an all cash purchase with no external financing necessary.

"We have proven our ability to execute and to consistently grow our diversified portfolio and are confident in our ability to leverage our orphan and rheumatology expertise to ensure that more patients with chronic refractory gout receive access to KRYSTEXXA," said Timothy P. Walbert, chairman, president and chief executive officer, Horizon Pharma plc. "KRYSTEXXA is central to our mission of helping patients live better lives by providing clinically-differentiated medicines that help address the challenges they face."

Strategic and financial benefits of the transaction:

  • Raises full-year 2016 net sales and adjusted EBITDA guidance:
    Prior Guidance (November 2015)   New Guidance
Net sales   $950 to $975 million   $1.025 to $1.050 billion
Adjusted EBITDA   $460 to $475 million   $505 to $520 million
  • Leverages rheumatology infrastructure by adding 41-person rheumatology specialty sales force currently promoting RAYOS and PENNSAID 2% to the 24-person rheumatology account managers currently promoting KRYSTEXXA.
  • Adds a biologic medicine in a rare disease with strong intellectual property protection through 2027 and further diversifies net sales.
  • Reinforces focus of Company's long-range plan where orphan medicines are expected to make up approximately 60 percent of net sales in 2020.

J.P. Morgan Presentation
Mr. Walbert will review the Company's financials, provide details regarding its orphan, primary care and rheumatology business units and its business development strategy at 11:30 a.m. Pacific Time (1:30 p.m. Central Time) on January 13, 2016 at the 34th Annual J.P. Morgan Healthcare Conference. The presentation and Q&A session following the presentation will be webcast live and may be accessed by visiting Horizon's website at http://ir.horizon-pharma.com. A replay of each webcast will be available following the events.

About Horizon Pharma plc
Horizon Pharma plc is a biopharmaceutical company focused on improving patients' lives by identifying, developing, acquiring and commercializing differentiated and accessible medicines that address unmet medical needs. The Company markets seven medicines through its orphan, primary care and rheumatology business units. Horizon's global headquarters are in Dublin, Ireland. For more information, please visit www.horizonpharma.com. Follow @HZNPplc on Twitter or view careers on our LinkedIn page.

Note Regarding Use of Non-GAAP Financial Measures
Horizon Pharma provides certain financial measures that include adjustments to GAAP figures, such as adjusted EBITDA, or earnings before interest, taxes, depreciation and amortization. These adjustments to GAAP exclude acquisition transaction related expenses, interest expense, tax expense, as well as non-cash items such as stock compensation, depreciation and amortization, accretion and other non-cash adjustments. Certain other special items or substantive events may also be included in the non-GAAP adjustments periodically when their magnitude is significant within the periods incurred.

Horizon believes that these non-GAAP financial measures, when considered together with the GAAP figures, can enhance an overall understanding of Horizon's financial performance and expected benefits of the Crealta acquisition. The non-GAAP financial measures are included with the intent of providing investors with a more complete understanding of the Company's expected operational results. In addition, these non-GAAP financial measures are among the indicators Horizon's management uses for planning and forecasting purposes and measuring the Company's performance. These non-GAAP financial measures should be considered in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. The non-GAAP financial measures used by the Company may be calculated differently from, and therefore may not be comparable to, non-GAAP financial measures used by other companies. The Company has not provided a reconciliation of its estimated 2016 adjusted EBITDA to a net income (loss) outlook because certain items that are a component of net income (loss) but not part of adjusted EBITDA, such as stock compensation, acquisition-related expenses and certain purchase accounting items such as intangibles and step-up inventory, cannot be reasonably projected, either due to stock compensation or the variability associated with acquisition-related expenses and purchase accounting items due to timing and other factors.

Forward-Looking Statements
This press release contains forward-looking statements, including, but not limited to, statements related to Horizon's anticipated acquisition of Crealta Holdings LLC and the timing thereof, Horizon's expected full-year 2016 net sales and adjusted EBITDA guidance, product mix in 2020, Horizon's business strategy and plans, and other statements that are not historical facts. These forward-looking statements are based on Horizon's current expectations and inherently involve significant risks and uncertainties. Actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of these risks and uncertainties, which include, without limitation, risks related to Horizon's ability to complete the Crealta acquisition on the proposed terms; Horizon's ability to successfully integrate Crealta and realize the expected benefits of the acquisition; the possibility that Horizon's actual full-year 2016 financial and operating results may differ from its expectations; Horizon's ability to grow net sales from existing products, successfully acquire additional products and increase the portion of net sales from its orphan business unit relative to its other business units; the availability of coverage and adequate reimbursement and pricing from government and third-party payors and Horizon's ability to successfully implement its patient support program; uncertainty with respect to clinical development and regulatory approvals; competition, including potential generic competition; the ability to protect intellectual property and defend patents; regulatory obligations and oversight, including any changes in the legal and regulatory environment in which Horizon operates; and those risks detailed from time-to-time under the caption "Risk Factors" and elsewhere in Horizon's SEC filings and reports, including its Annual Report on Form 10-K for the year ended December 31, 2014 and subsequent Quarterly Reports on Form 10-Q. Horizon undertakes no duty or obligation to update any forward-looking statements contained in this presentation as a result of new information, future events or changes in its expectations.

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