UCB to Acquire Epilepsy Drug Developer Zogenix for $1.9 Billion
January 19, 2022
UCB said it entered into a definitive agreement to acquire rare disease drug developer Zogenix for up to $1.9 million.
UCB will pay $26 per share in cash plus a contingent value right (CVR) for a potential $2 per share upon European Union approval of Fintepla as a treatment of Lennox-Gastaut syndrome by December 31, 2023. The upfront consideration represents a 72 percent premium to Zogenix shares based on the 30-day volume weighted average closing stock price of Zogenix prior to signing.
The board of directors of both companies have unanimously approved the transaction. The closing is subject to the tender of shares representing at least a majority of the total number of Zogenix’s outstanding shares, antitrust clearances, and other customary conditions.
UCB said the acquisition provides it with Fintepla, a drug that complements its existing symptomatic treatments, bringing significant and differentiated value to patients suffering from Dravet syndrome and, if approved, from seizures associated with Lennox-Gastaut syndrome and potentially other rare epilepsies.
With the company’s global footprint and deep expertise in epilepsy, it said it will be able to rapidly advance and optimize the availability of these new treatments and reach additional patients.
The transaction also enhances UCB’s epilepsy pipeline and strategic priorities in rare/orphan diseases and adds to the company’s topline growth.
The acquisition of Zogenix will be financed by a combination of available cash resources and a new term loan. The transaction is not subject to any financing condition. In addition to contributing to UCB’s revenue growth after closing, the acquisition of Zogenix is expected to be accretive to UCB’s earnings from 2023 onwards.
Zogenix is pursuing other indications for the use of Fintepla in the treatment of seizures associated with additional rare epilepsies, Lennox-Gastaut syndrome and CDKL5 Deficiency Disorder.
“Complementing UCB’s existing therapeutic offerings, the Zogenix acquisition provides UCB with an approved medicine for a life-threatening, rare infant- and childhood-onset epilepsy marked by frequent and severe treatment-resistant seizures that are particularly challenging to treat,” said Charl van Zyl, executive vice president for Neurology and Head of Europe/International Markets for UCB. “Utilizing our deep expertise, experience, and global capabilities, we plan to accelerate access for patients to the treatment.”
Author: Rare Daily Staff
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