After the $700m sale of Adapt Pharma, these Irish investors are in line for a big payday
The Dublin-based company was set up four years ago by Séamus Mulligan and other entrepreneurs.
HALF A DOZEN Irish businessmen are in line for a major payday following the sale of an Irish drug development company for more than $700 million.
Life sciences company Emergent BioSolutions has agreed to acquire Dublin firm Adapt Pharma for a total consideration of $735 million (€628 million).
Séamus Mulligan, an entrepreneur from Waterford, set up Adapt Pharma four years ago with fellow serial pharmaceutical entrepreneurs David Brabazon and Eunan Maguire.
The group of pharma investors amassed a cash pile of over $100 million to bankroll the company in its initial stages. The firm’s backers will also share in the payday, which incorporates a $635 million upfront payment including $60 million in Emergent stock.
Adapt Pharma’s shareholders could be in line for a further $100 million in cash if sales-based milestones are met over the coming four years.
The deal represents the second major sale for the group of experienced pharma investors. Mulligan, Brabazon and Maguire were all involved in the establishment of Azur Pharma, which was acquired by Jazz Pharmaceuticals for about $500 million in 2011.
Four years ago, Mulligan cashed in his Jazz shares – worth roughly $86 million at the time – adding that the cash would be used to finance Adapt Pharma.
Other Irish businessmen that will share the windfall include Adapt Pharma’s chief technology officer Fintan Keegan, a US-based executive for the company Michael Kelly and James Skehan, who is company secretary.
Opioid crisis
The US buyer, Emergent, is focused on the development of products that address public health threats.
Since it was established, Adapt Pharma has been focused on the development of Narcan, the only US FDA-approved needle-free emergency opioid overdose treatment.
Consolidated accounts for the Adapt Pharma group showed that the firm registered revenue of $24.8 million during 2016 – the year it launched its Narcan product.
US president Donald Trump has previously said that the opioid drug crisis is a public health emergency.
Based on figures released by the Centers for Disease Control and Prevention, there were approximately 42,000 deaths in the US in 2016 due to opioid overdose.
Upon completion of the sale, Emergent will acquire the Narcan nasal spray developed by Adapt Pharma and the Irish firm’s development pipeline of new treatments being created to address opioid overdoses.
Approximately 50 Adapt Pharma employees located across the US, Canada and Ireland will also join Emergent’s ranks.
