Supernus Pharmaceuticals Inc (NASDAQ: SUPN) recently announced that it had entered a definitive contract to acquire Adamas Pharmaceuticals (NASDAQ: ADMS). Supernus is to purchase this company a tender offer that was worth about $8.10 per share. The aggregate was roughly $400 million.
This is payable plus a pair of non-tradeable CVR (contingent value rights) collectively worth around $1 per share. The first $0.50 per share CVR is payable when GOCOVRI net sales of $150 million are achieved in four consecutive quarters in 2024.
The second $0.50 per share CVR is payable when GOCOVRI net sales of $225 million are completed in 2025. The deal is to be done by the end of the 2022 first quarter.
This deal will provide the company with two marketed products. OSMOLEX, approved to treat drug-induced extrapyramidal reactions and Parkinson’s disease. And GOCOVRI, the pioneer FDA-approved medication to treat dyskinesia in people with Parkinson’s disease.
Supernus’ President and Chief Executive Officer, Jack Khattar, said that the acquisition represents a huge step toward building a diverse and robust Parkinson’s disease product portfolio. He claimed that it aligned with their focus on getting clinically differentiated, value-enhancing medication to treat CNS diseases.
Jack said that they’ve proven they have strong commercial execution. He said that they’re looking forward to building on this momentum.
Financial and Strategic Benefits
Increases and diversifies cash flow and revenue base. GOCOVRI net sales were $71.2 million in 2020 and $37.7 million in the second quarter of 2021. Combined with the US WorldMeds acquisitions, this deal will significantly decrease Trokendi’s net sales reliance.
Substantial overlaps of the existing structures produced $60 to $80 million potential synergies.
Adamas Pharmaceuticals’ Chief Executive Officer, Neil McFarlane, said that they’re happy that Supernus Pharmaceuticals recognized the value Adamas creates and firmly believes that this path is a great move for both their stakeholders and shareholders alike.
The CEO claimed that with the shared commitment to help people battling neurological diseases, the company they are executing a deal with will help them advance and reach their mission.
He said that he was extremely proud of their team for all the dedication and hard work they put in to help the company get where it is. He said that he is confident that this partnership will help maximize their potential.
Supernus is to acquire Adamas at the rate of $8.10 per share, which is an aggregate of roughly $400 million.
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