(Alliance News) - Recordati Spa announced Friday the completion of the acquisition of global rights to Enjaymo from Sanofi SA, following regulatory approvals.

Enjaymo is a biologic drug and the only approved product targeted for the treatment of cold agglutinin disease, a rare B-cell lymphoproliferative disorder. It is a humanized monoclonal antibody indicated for the treatment of hemolysis in adults with CAD.

In 2022, it gained approval from the U.S. Food and Drug Administration, the European Commission and the Japanese Ministry of Health, Labor and Welfare. Administered as a chronic intravenous treatment, Enjaymo addresses an important unmet medical need in patients with CAD.

As previously announced, Enjaymo generated approximately EUR100 million in revenues in the 12 months through August and is expected to generate revenues in excess of EUR150 million in fiscal year 2025, with a potential peak total annual sales of EUR250-300 million. The transaction will be immediately accretive to Ebitda, with profitability above the current average for the rare disease segment starting in 2025.

Upon completion of the transaction, a consideration of USD825 million was paid, financed through existing cash and new bank financing. The terms of the agreement include additional payments tied to milestones of up to USD250 million if net revenues reach certain thresholds equal to or above expectations of peak total annual sales.

Recordati assumes that net debt will be about 2.4-2.5 times Ebitda at the end of 2024, reducing to less than 2.0 times at the end of 2025, assuming no further business development.

The group expects to consolidate from Enjaymo in FY2024 results revenues of about EUR10 million and a positive minimum Ebida for the month of December. Targets for fiscal year 2025, including Enjaymo's contributions, will be provided in February along with preliminary fiscal year 2024 results.

Rob Koremans, Recordati's chief executive officer, said, "We are extremely pleased to add Enjaymo to our rare disease portfolio, reinforcing our commitment to addressing the needs of patients with limited treatment options. This transaction is a perfect fit with our existing business, with an attractive product profile and strong financial contributions expected in both revenues and profits."

"We are also excited to welcome talented new colleagues from Sanofi who are behind the success of Enjaymo, and we are now focused on the rapid and successful integration of the product into the organization."

Recordati's stock closed Friday up 0.4 percent to EUR51.55 per share.

By Giuseppe Fabio Ciccomascolo, Alliance News senior reporter

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