Zogenix shares jump on UCB's $1.9B acquisition proposal

Jan. 19, 2022 5:52 AM ETZogenix, Inc. (ZGNX)By: Niloofer Shaikh, SA News Editor6 Comments
  • UCB to commence a tender offer to acquire Zogenix (NASDAQ:ZGNX) for ~$1.9B/€1.7B, consisting of $26 in cash per share plus contingent value right for a potential cash payment of $2.00 per share upon EU approval by December 31, 2023, of FINTEPLA as an orphan medicine for treatment of Lennox-Gastaut syndrome (LGS).
  • ZGNX shares jumped 60% in response to this news.
  • The consideration represents a 72% premium to Zogenix shares based on the 30-day volume weighted average closing stock price.
  • The board of directors of both companies have unanimously approved the transaction.
  • If completed, the acquisition will contribute to UCB's revenue growth upon closing and will be accretive to its earnings in 2023.
  • The transaction is expected to close by the end of 2Q22.
  • There can be no assurance any payments will be made with respect to the CVR.
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