Horizon Pharma plc (HZNP) Boosts FY16 Sales, adj.-EBITDA Outlook

(Updated - January 12, 2016 7:28 AM EST)

Horizon Pharma plc (NASDAQ: HZNP) 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

** Consensus estimates call for FY16 revenue of $998.8 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.

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