Xeris will pay with stock and contingent value rights (CVRs). Under the terms of the agreement, Strongbridge shareholders will receive 0.7840 share of Xeris Biopharma common stock for each Strongbridge ordinary share they own, as well as 1 non-tradeable CVR worth up to an additional $1.00.
Based on Xeris' closing price on Friday of $3.47 and Strongbridge’s fully diluted share capital, the deal values Strongbridge at approximately $2.72 per share, a 12.9% premium to Friday’s closing price.
Xeris recently traded at $3.32, down 4.3% and has slid 20% in the last six months. Strongbridge shares were trading up 12.5% to $2.69 on Monday morning.
The deal is expected to close early in the fourth quarter of 2021, and the combined entity will be named Xeris Biopharma Holdings.
"This is a very compelling transaction that will create a scalable and diversified biopharmaceutical company increasingly oriented toward more specialty and rare disease products, positioning us for long-term product development and commercial success," said Paul R. Edick, Chairman and CEO of Xeris, in a press release. "Strongbridge’s attractive rare disease portfolio and capabilities are highly complementary with Xeris."
Current Xeris shareholders are expected to own approximately 60% of the combined company, while current Strongbridge shareholders are expected to own approximately 40%.
In other drug news, TheStreet.com’s Dawn Kawamoto wrote last week about why COVID-19 vaccines could be the start of a vaccine revolution.
The technology that’s proven to be safe and effective in Pfizer PFE/BioNtech BNTX and Moderna’s MRNA breakthrough COVID vaccines could soon be used in a host of other vaccines and drug treatments, she writes.
Also, last week, JPMorgan Chase JPM became the latest company to adopt the U.S. Centers for Disease Control and Prevention's new mask and social-distancing guidelines.