BridgeBio Pharma to increase its stake in Eidos Therapeutics by 36.3%
- BridgeBio Pharma to increase its stake in Eidos Therapeutics by 36.3%.
- The deal represents a 41% premium on Eidos' closing price on Friday.
- The two companies are confident of closing the deal in Q1 of 2021.
BridgeBio Pharma Inc (NASDAQ: BBIO) said on Monday that it will increase its stake in Eidos Therapeutics Inc (NASDAQ: EIDX) by 36.3% in a cash deal that is valued at £134.95 million (aggregate maximum).
At £30.54 per share, BridgeBio Pharma is currently 20% up year to date in the stock market after recovering from a low of £12.42 per share in March. At the time of writing, BridgeBio has a market capitalisation of £3.74 billion.
BridgeBio received FDA approval for Fosdenoptrin
Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today.
As per the agreement, Eidos shareholders will get 1.85 common shares of BridgeBio for each share of Eidos. Or, they’d be able to cash their shares at £56.49 per share. Upon completion of the transaction, Eidos shareholders are expected to own a 16% to 18% of BridgeBio.
The deal represents a premium of 41% on the price at which Eidos closed the regular session on Friday. BridgeBio said last week that its Fosdenoptrin drug received FDA approval for the treatment of MoCD Type-A.
Both companies have already received approval from the respective board of directors. The deal that is not dependent on financing contingency, is likely to be closed in the first three months of 2021. According to BridgeBio, it will use the cash on hand to fund the acquisition.
Once the transaction is completed, Eidos will no longer trade independently on the U.S. Nasdaq stock exchange and will become BridgeBio Pharma’s wholly-owned subsidiary. Eidos is currently committed to developing Acoramidis – a candidate TTR stabiliser for polyneuropathy and ATTR cardiomyopathy.
BridgeBio to launch two new drugs in 2021
BridgeBio acknowledged on Monday that bringing Acoramidis under its umbrella will be the next big step for its rapidly expanding cardiorenal portfolio. It also expressed confidence that several other meaningful milestones are currently in the pipeline to be achieved in the next two years.
If approved, BridgeBio is scheduled to launch two new drugs in 2021. In related news from the U.S., Bristol Myers said on Monday that it will acquire MyoKardia for £10 billion.
Eidos Therapeutics opened 30% up on Monday at £52.82 per share. Including the price action, shares of the company are now roughly 20% up versus the start of the year. In mid-march, the stock had plummeted to £29.50 per share.
At the time of writing, the San Francisco-based company now has a market cap of £2.04 billion.