Why SteadyMed Shares Are Skyrocketing

By Chris Lange Updated Jan 12, 12:18AM EST · Published Apr 30, 9:50AM EDT

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Why SteadyMed Shares Are Skyrocketing — © Thinkstock

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.

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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.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.