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`November 19, 2013
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`Horizon Pharma Announces Agreement to Acquire U.S. Rights to VIMOVO(R) and Provides
`2014 Guidance
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`Horizon to Host Conference Call / Webcast Today at 8:00a.m. EST
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`DEERFIELD, IL -- (Marketwired) -- 11/19/13 -- Horizon Pharma, Inc. (NASDAQ: HZNP) today announced that it has entered into
`an agreement to acquire from AstraZeneca AB the U.S. rights to VIMOVO® (naproxen/esomeprazole magnesium) delayed(cid:173)
`release tablets, further expanding Horizon's focus on key primary care physician targets in the U.S. VIMOVO is approved in the
`U.S. to relieve the signs and symptoms of osteoarthritis, rheumatoid arthritis and ankylosing spondylitis and to decrease the
`risk of stomach (gastric) ulcers in patients at risk of developing stomach ulcers from treatment with NSAIDs. AstraZeneca will
`retain ex-U .S. rights to VIMOVO.
`
`"The acquisition of VIMOVO is a major step forward in our strategy to leverage our business model and maximize our
`commercial infrastructure and we expect it to create significant value for our shareholders," stated Timothy P. Walbert,
`chairman, president and chief executive officer of Horizon. "We anticipate that this transaction will significantly increase our
`revenues and accelerate the Company to profitable operations."
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`Expected Benefits of Transaction
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`• Leverages the Company's existing commercial infrastructure.
`• Expected to accelerate the Company's time to profitability.
`• Expected to be accretive to non GAAP net income in 2014.
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`Full-year 2014 Guidance
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`• The Company expects 2014 full-year net revenue of $190 to $205 million.
`• The Company expects to be profitable in 2014 on a non GAAP basis, based on Horizon's prior GAAP to non GAAP
`reconciliation practice.
`• The Company expects that existing cash at September 30, 2013, of $58.7 million, along with the net proceeds from an
`offering of convertible senior unsecured notes of approximately $19.7 million, will fund it to cash flow positive operations.
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`Transaction Details
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`• The Company will make a one-time upfront payment of $35 million to AstraZeneca for the U.S. rights to VIMOVO and will
`pay a 10% royalty on net sales to Pozen, subject to annual minimum royalties of $5 million in 2014 and $7.5 million each
`year thereafter, provided that the patents owned by Pozen which cover VIMOVO remain in effect and no generic forms of
`VIMOVO are on the market.
`• For the remainder of the fourth quarter of 2013, AstraZeneca will continue to distribute and book revenues for VIMOVO
`and Horizon will receive any related net profits from AstraZeneca .
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`Operational Plan
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`• The Company expects to begin sales of VIMOVO early in the first quarter of 2014.
`• The Company plans to expand its primary care sales force from 150 representatives to approximately 250 sales
`representatives, with representatives promoting DU EXIS® and VIMOVO to specific targets, with approximately 30%
`overlap in targets for both DUEXIS and VIMOVO.
`• The Company will expand its rheumatology specialty sales force from 25 representatives to approximately 40
`representatives, with representatives promoting RAYOS® and VIMOVO to rheumatologists.
`• The Company plans to include VIMOVO in the Company's Prescriptions-Made-E asy ~pecialty pharmacy program to
`ensure patients receive VIMOVO at a reasonable out-of-pocket cost.
`• The Company expects to price VIMOVO in line with DUEXIS and other branded NSAIDs when it begins selling VIMOVO.
`• The Company expects gross-to-net sales deductions of VIMOVO to be between 35% and 40%.
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`Advisors
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`JMP Securities LLC acted as financial advisor and Cooley LLP acted as legal advisor to the Company on the VIMOVO
`acquisition.
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`Investor Conference Call I Webcast Information
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`At 8:00a.m. Eastern Time today, Horizon's management will host a live conference call and webcast to provide further
`information on this announcement.
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`The live webcast and a replay may be accessed by visiting Horizon's website at http://ir.horizon-pharma.com. Please connect to
`the Company's website at least 15 minutes prior to the live webcast to ensure adequate time for any software download that
`may be needed to access the webcast. Alternatively, please call 1-888-338-8373 (U.S.) or 973-872-3000 (international) to
`listen to the conference call . The conference ID number for the live call is 13405454. Telephone replay will be available
`approximately two hours after the call. To access the replay, please call 1-855-859-2056 (U.S.) or 404-537-3406
`(international). The conference ID number for the replay is 13405454.
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`About Horizon Pharma
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`Horizon Pharma, Inc. is a specialty pharmaceutical company that has developed and is commercializing products to primary
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`care, orthopedic surgeons and rheumatologists. The Company markets DUEXIS and RAYOS /LODOTRA and will market
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`VIMOVO®, which target unmet therapeutic needs in arthritis, pain and inflammatory diseases. The Company's strategy is to
`develop, acquire or in-license additional innovative medicines where it can execute a targeted commercial approach among
`specific target physicians while taking advantage of its commercial strengths and the infrastructure the Company has put in
`place. For more information, please visit www.horizonpharma.com.
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`About VIMOVO
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`VIMOVO® (naproxen I esomeprazole magnesium) is a proprietary fixed-dose combination of delayed-release enteric-coated
`naproxen, a non-steroidal anti-inflammatory drug (NSAID) and immediate-release esomeprazole, a stomach acid-reducing
`proton pump inhibitor (PPI), approved for the relief of signs and symptoms of osteoarthritis, rheumatoid arthritis and ankylosing
`spondylitis and to decrease the risk of developing gastric ulcers in patients at risk of developing NSAID-associated gastric
`ulcers. VIMOVO is not recommended for use in children younger than 18 years of age. VIMOVO is not recommended for initial
`treatment of acute pain because the absorption of naproxen is delayed compared to absorption from other naproxen(cid:173)
`containing products. Controlled studies do not extend beyond 6 months. VIMOVO should be used at the lowest dose and for
`the shortest amount of time as directed by your health care provider.
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`For Full Prescribing Information see www.VIMOVO.com.
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`Forward Looking Statements
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`This press release contains forward-looking statements, including statements regarding the expected acquisition of the U.S.
`rights to VIMOVO, the anticipated benefits of the acquisition, including potential shareholder value creation and impact on
`Horizon's future financial results, Horizon's plans and expectations with respect to its commercialization of VIMOVO in the United
`States, including planned increases in its field sales force, and Horizon's expectations with respect to 2014 revenue and time to
`profitability . These forward-looking statements are based on management's expectations and assumptions as of the date of
`this press release and actual results may differ materially from those in these forward-looking statements as a result of various
`factors. These factors include, but are not limited to risks regarding the closing of the acquisition, Horizon's ability to
`commercialize its products successfully, the impact of pricing decisions on product revenues, Horizon's ability to successfully
`hire and manage contract sales and marketing personnel, Horizon's ability to comply with post-approval regulatory
`requirements, Horizon's ability to increase revenues to offset increases in expenses as a result of the VIMOVO acquisition, the
`outcome of on-going and potential future patent litigation with respect to Horizon's products, including VIMOVO, and Horizon's
`ability to satisfy the closing conditions for the VIMOVO acquisition. For a further description of these and other risks facing the
`Company, please see the risk factors described in the Company's filings with the United States Securities and Exchange
`Commission, including those factors discussed under the caption "Risk Factors" in those filings. Forward-looking statements
`speak only as of the date of this press release and the Company undertakes no obligation to update or revise these
`statements, except as may be required by law.
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`Contacts
`Investors
`Robert J. De Vaere
`Executive Vice President and Chief Financial Officer
`Email Contact
`
`

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`Media
`Justin Jackson
`Burns McClellan, Inc.
`212-213-0006
`Email Contact
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`Source: Horizon Pharma
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