United Therapeutics Corporation (Nasdaq: UTHR) has announced that it is acquiring drug development company SteadyMed Ltd.(Nasdaq:STDY). United Therapeutics will pay $4.46 per share in cash at closing yesterday and an additional $2.63 per share in cash upon the achievement of a milestone related to the commercialization of SteadyMed's leading drug candidate Trevyent for the treatment of Pulmonary Arterial Hypertension (PAH). The transaction, including the $75 million in contingent consideration, is valued at $216 million.
SteadyMed is a specialty pharmaceutical company focused on the development and commercialization of drug product candidates to treat orphan and high-value diseases with unmet parenteral delivery needs. In addition to Trevyent, SteadyMed’s portfolio includes a two day, single use, disposable PatchPump technology with treprostinil, a vasodilatory prostacyclin analogue, for the subcutaneous treatment of pulmonary arterial hypertension (PAH).
SteadyMed was founded in Israel in the Zisapel family's RAD Biomed incubator and although today under US management and headquartered in San Ramon, California, much of the company's development is carried out in its Rehovot offices. Among the company's investors is Ari Steimatzky. In 2015, the company raised $40 million on Nasdaq and over the past two years raised $62 million in private placements.
United Therapeutics is a biotechnology company focused on the development and commercialization of therapies for the treatment of PAH and other orphan diseases.
SteadyMed president and CEO Jonathan Rigby said, “United Therapeutics has always been at the forefront of developing therapies to treat PAH, and we are delighted at the prospect of our companies coming together, as one, to continue that mission. We believe that this proposed acquisition will help us realize our commitment to bring Trevyent to market to improve the lives of patients with PAH.”
United Therapeutics chairman and CEO Martine Rothblatt said, “We are optimistic about acquiring SteadyMed and adding Trevyent to our pipeline of products to treat PAH. We are especially impressed with SteadyMed’s management team and global supply chain. Trevyent fits in well with our mission, and we look forward to bringing the product to the maximum number of patients as soon as possible.”
SteadyMed's board of directors has unanimously approved the merger agreement and recommended that SteadyMed shareholders adopt the merger agreement. SteadyMed shareholders own about 43.3% of the ordinary shares of SteadyMed and have entered into an agreement to vote their shares in favor of the transaction.
Published by Globes [online], Israel business news - www.globes-online.com - on April 30, 2018
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