Wed, May 6, 1:29 PM
- Alexion Pharmaceuticals (ALXN -9.7%) heads south on a 7x surge in volume as investors adjust to the dilution from its $8.4B takeout of Synageva BioPharma (GEVA +113.7%).
- In addition to $115 in cash, Alexion is offering 0.6581 shares of ALXN stock for each GEVA share. This represents a ~12% dilution to current ALXN shareholders.
- Here's the math: 0.6581 x 36.5M shares of GEVA = ~24M/202M shares of ALXN = ~12%.
Wed, May 6, 7:24 AM
- Alexion Pharmaceuticals (NASDAQ:ALXN) acquires Synageva BioPharma (NASDAQ:GEVA) for $115 in cash and 0.6581 shares of ALXN for each share of GEVA, for a total value of $230 per share or $8.4B.
- Alexion expects to achieve annual cost synergies this year and growing to at least $150M in 2017. The transaction will be accretive to non-GAAP EPS in 2018.
- Synageva develops therapies for rare diseases. Its lead product candidate is the Orphan Drug-, Fast Track- and Breakthrough Therapy-designated Kanuma (sebelipase alfa), an enzyme replacement therapy for the treatment of lysosomal acid lipase deficiency or Wolman disease. Its marketing applications are currently under review in the U.S. and Europe. Its second product candidate is the Phase 1/2-stage SBC-103, an enzyme replacement therapy for mucopolysaccharidosis IIIB, known as Sanfilippo B syndrome, a rare, inherited lysosomal storage disease. It is designated an Orphan Drug by the FDA and EMA and for Fast Track review by the FDA.
- GEVA is up 124% premarket.
GEVA vs. ETF Alternatives
Synageva BioPharma Corp is a biopharmaceutical company. The Company engages in the discovery, development, and commercialization of therapeutic products for patients with life-threatening rare diseases and unmet medical need.
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