SteadyMed Ltd. (NASDAQ: STDY) saw its shares skyrocket early on Monday after the company announced that it would be acquired by United Therapeutics Corp. (NASDAQ: UTHR). If it should go through, the deal is expected to close in the third quarter of this year.
The board of directors of SteadyMed unanimously approved the merger agreement and unanimously recommended that SteadyMed shareholders adopt the merger agreement. Those shareholders owning approximately 43.3% of the ordinary shares of SteadyMed have entered into an agreement to vote their shares in favor of the transaction.
Although, the transaction is subject to regulatory approval among other things.
Under the terms of the deal, United Therapeutics will acquire SteadyMed for $4.46 per share in cash at closing and an additional $2.63 per share in cash upon the achievement of a milestone related to the commercialization of Trevyent. The entire transaction, including the $75 million in contingent consideration, is valued at $216 million.
SteadyMed’s product portfolio includes Trevyent, a development-stage drug-device combination product that combines SteadyMed’s two-day, single-use, disposable PatchPump technology with treprostinil, a vasodilatory prostacyclin analogue, for the subcutaneous treatment of pulmonary arterial hypertension (PAH). United Therapeutics is a leading biotechnology company focused on the development and commercialization of therapies for the treatment of PAH and other orphan diseases.
Martine Rothblatt, Ph.D., board chair and chief executive of United Therapeutics, commented:
We are optimistic about acquiring SteadyMed and adding Trevyent to our pipeline of products to treat PAH. We are especially impressed with SteadyMed’s management team and global supply chain. Trevyent fits in well with our mission, and we look forward to bringing the product to the maximum number of patients as soon as possible.
Shares of SteadyMed were last seen up about 79% at $4.74, with a consensus analyst price target of $15.00 and a 52-week trading range of $2.60 to $7.50.
United Therapeutics shares were last seen at $112.22, with a consensus price target of $126.00 and a 52-week range of $106.30 to $152.55.
24/7 Wall St.“The Next NVIDIA” Could Change Your Life
If you missed out on NVIDIA’s historic run, your chance to see life-changing profits from AI isn’t over.
The 24/7 Wall Street Analyst who first called NVIDIA’s AI-fueled rise in 2009 just published a brand-new research report named “The Next NVIDIA.”
Click here to download your FREE copy.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
