Zymeworks' $929M Theravance Acquisition Sends Both Stocks Lower
ZYME has more than doubled off its 52-week low of $11.51.
Summary
Zymeworks is acquiring Theravance Biopharma for $929 million, paying $17 per share in cash plus contingent value rights for future monetization of ampreloxetine. This major strategic move, representing over 50% of Zymeworks' market cap, is met with a negative market reaction, as both Zymeworks and Theravance Biopharma shares fell in premarket trading. While Zymeworks expects the deal to be accretive, driven by Theravance's commercial COPD drug Yupelri and its $60 million annualized cash flow, the $17 cash offer for Theravance was a 3.6% discount to its Friday closing price. The acquisition is expected to close in the second half of the year.
At the time of this announcement, ZYME was trading at $23.82 on NASDAQ in the Life Sciences sector, with a market capitalization of approximately $1.8B. The 52-week trading range was $11.51 to $29.75. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.