Danish drugmaker Novo Nordisk A/S (NVO) (OTCPK:NONOF) has agreed to acquire Forma Therapeutics (FMTX), a U.S.-based biotech focused on therapies for sickle cell disease (SCD), in an all-cash deal worth $1.1B in equity value, the companies announced Thursday.
Following a brief trading halt, FMTX added 48% in the pre-market while American Depository Shares of NVO traded flat in reaction to news.
Per the terms, NVO will acquire all outstanding shares of FMTX’s common stock for $20 per share in cash, indicating a ~92% premium to the company’s 30-day volume-weighted average price per share. The transaction is expected to close in Q4 2022.
In connection with the deal, R.A. Capital Management, L.P., which holds nearly ~19% of FMTX shares, has agreed to tender its FMTX shares in a tender offer that NVO plans to initiate for the acquisition.
FMTX’s clinical portfolio includes Etavopivat, which is undergoing a global phase 2/3 trial for SCD and a phase 2 trial for transfusion-dependent SCD and thalassemia.
The offer for FMTX comes at a time when company shares have plunged ~44% over the past 12 months, as shown in this graph.