A North Carolina company that developed an attention deficit hyperactivity disorder drug is being sold for $525 million in cash.
Ironshore Therapeutics, which is based in Morrisville, agreed to be purchased by Stoughton, Mass.-based Collegium Pharmaceutical in a deal that would be boosted by an additional $25 million depending on the drug’s sales in 2025.
The drug, called Jornay PM, is expected to produce sales in excess of $100 million in 2024. In the first half of 2024, Jornay PM prescriptions grew 32% year-over-year. It is used for patients six years and older.
In 2023, the product generated approximately 490,000 prescriptions, a 58% increase compared to 2022. Jornay PM is different from other ADHD drugs due to its evening dosing, smooth therapeutic effect and dose-dependent duration.
Ironshore was a subsidiary of Toronto-based Highland Therapeutics, which has been developing ADHD drugs for more than a decade. Stephanie Read was named CEO in 2022, succeeding Highland founder David Lickrish. Read previously worked for CSL, AstraZeneca and Shire.
The Ironshore acquisition will be immediately accretive to Collegium, diversifies its portfolio and has revenue potential and exclusivity into the 2030s, Collegium interim CEO Michael Heffernan said in a release.
The deal will be funded by a combination of Collegium’s existing cash on hand and a $646 million secured financing from funds managed by Pharmakon Advisors. The new five-year term loan will replace the existing Collegium term loan from Pharmakon.
Collegium expects the deal to close by the end of September.
For the second quarter ended June 30, Collegium estimates net product revenues of $145 million, up 7% year-over-year. Its stock price fell $2.23 to $36.36 on Friday.
In May, Ironshore Therapeutics struck a deal with Knight Therapeutics to distribute Jornay PM in Canada and Latin America. The drug was approved by the U.S. Food and Drug Administration in 2018.