Chiesi Acquires Amryt Pharma for Up to $1.5 Billion
January 9, 2023
Italian pharmaceutical Chiesi Farmaceutici is acquiring Amryt Pharma for up to $1.5 billion to expand its rare disease medicine portfolio with the addition of several approved therapeutics.
Under the terms of the transaction, which has been approved by both companies’ boards of directors, Chiesi will purchase all outstanding shares of Amryt for a purchase price per American Depositary Share (ADR) of Amryt, which each represent 5 Amryt ordinary shares, of $14.50 (or $2.90 per ordinary share) in cash, plus Contingent Value Rights (CVRs) of up to $2.50 per ADS (or up to $0.50 per ordinary share) payable if certain milestones related to Amryt’s product Filsuvez are achieved. The total deal value at close is approximately $1.25 billion in upfront cash, representing a 107 percent premium based on Amryt ADS’ closing price of $7.00 on January 6, 2023, plus CVRs representing an additional approximately $225 million of potential consideration. The deal is expected to close in the first half of 2023.
CVRs of up to $2.50 per ADS are payable if certain milestones related to Amryt’s Filsuvez are achieved before December 31, 2024, consisting of $1.00 per ADS upon U.S. Food and Drug approval of Filsuvez and $1.50 per ADS upon successful receipt of a Priority Review Voucher from the FDA.
“With this transaction, we are further expanding our commitment to people living with rare diseases, the majority of which still have no cure or approved treatment,” said Marco Vecchia, CEO of Chiesi Group. “Amryt has steadily brought innovative products to new markets and, by adding them to the Chiesi portfolio, we hope to make them available to even more patients who may require them.”
The European Commission approved Amryt’s Filsuvez in the European Union in June 2022 for the treatment of partial thickness wounds associated with dystrophic and junctional epidermolysis bullosa in patients 6 months and older. Filsuvez is the first treatment approved in any market to treat epidermolysis bullosa (EB), a rare and devastating group of hereditary disorders of the skin, mucous membranes, and internal epithelial linings characterized by extreme skin fragility and blister development. Patients with severe forms of EB suffer from severe, chronic blistering, ulceration and scarring of the skin, mutilating scarring of the hands and feet, joint contractures, strictures of the esophagus and mucous membranes, a high risk of developing aggressive squamous cell carcinomas, infections, and risk of premature death.
“Chiesi is aligned with Amryt’s commitment and passion and I believe Chiesi will further maximize the value of Amryt’s current portfolio and pipeline and most importantly, will accelerate our ability to reach more patients in need globally,” said Joe Wiley, CEO of Amryt Pharma. The Board evaluated the transaction through a thoughtful process that included engagement with both strategic and financial parties against Amryt’s standalone prospects and determined that the compelling and certain cash consideration and meaningful upside presented by the CVRs provides superior risk-adjusted value relative to Amryt’s standalone prospects.”
Author: Rare Daily Staff
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