What Akcea Shareholders Get in the Ionis Buyout

Health and Healthcare

Published: August 31, 2020 11:01 am

Akcea Therapeutics Inc. (NASDAQ: AKCA) stock jumped on Monday after it was announced that Ionis Pharmaceuticals Inc. (NASDAQ: IONS) would be acquiring all of its outstanding shares.

Under the terms of the deal, Ionis will acquire the shares for $18.15, which corresponds to a total transaction value of approximately $500 million on a fully diluted basis. The transaction is expected to be funded through existing cash resources.

Also, this transaction has been approved by both the Ionis and Akcea boards of directors and is expected to close in the fourth quarter of 2020.

Ultimately, the deal will help Ionis realize more financial upside from Akcea’s pipeline and commercial products. Accordingly, Ionis will gain full access to Akcea’s significant cash on hand of roughly $390 million and future cash flows to further invest in the company’s future and further support Ionis’ capital allocation strategy.

Akcea management noted that this transaction delivers immediate and certain value with a premium to Akcea shareholders. The close collaboration with Ionis has been key to enabling the launch of two commercial antisense medicines in just two years, as well as advancing a late-stage pipeline and securing important partnerships.

Accordingly, Akcea shareholders are getting a solid premium from this buyout. The 50-day and 200-day moving averages imply premiums of 44.3% and 16.5%, respectively.

Akcea stock traded up about 60% Monday morning, at $18.19 in a 52-week range of $8.00 to $22.79. The consensus price target is $27.00.

Ionis stock was up 2% to $53.92, in a 52-week range of $39.32 to $67.31. The consensus price target is $68.11.

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