Dyax Corp. (DYAX) to be Acquired By Shire for $5.9 Billion
Shares of Dyax Corp. (DYAX) were trading up +9.20 or +33.42 percent to $36.73 per share in Monday’s premarket after news that the company would be acquired by Shire Plc (SHPG) in a deal worth $5.9 billion. Dyax Corp stock closed at $27.53, down -0.13 or -0.47 percent in Friday’s regular trading session.
St. Helier, Jersey based Shire Plc has its corporate headquarters in Dublin, Ireland. Shire is a global specialty biopharmaceutical company with large operations in the United States. The company’s brands include Adderall XR, Pentasa, Intuniv, Vyanse and Elaprase to name just a few. Shire has built its global business through a series of strategic takeovers, including it current attempt to takeover Baxalta (BXLT) . The company was itself a takeover target, having been offered $46 billion by AbbVie, nevertheless, the merger fell apart after changes to the U.S. “Tax Inversion” law with the merger called off on October 21st and AbbVie subject to paying Shire a $1.6 billion breakup fee.
Shire Plc offered Dyax shareholders $37.50 per share, which represents a +35.5 percent premium to Dyax stock’s Friday closing price. In addition to the cash for the shares, Dyax shareholders will receive a non tradable contingent value right, which could be worth as much as $4.00 per share or an extra $646 million. The value right is contingent on the approval of Dyax’s DX-2930 drug for the treatment of hereditary angioedema.
President and Chief Executive Officer of Dyax, Gustav A. Christensen said in the company’s press release that, “We believe this transaction will deliver substantial value to our shareholders and highlights our shared commitment to bringing innovative medicines to patients who suffer from the devastating effects of HAE. Our approved product, KALBITOR, was an important first step to bringing a range of HAE medicines to patients. Shire's expertise and proven rare disease patient identification and management capabilities make it the ideal partner to efficiently bring DX-2930 to HAE patients worldwide. I'm proud of the company that our team has built, and I'm confident that Dyax's important mission and focus on improving the lives of patients will continue as part of the Shire family.”
The takeover will add DX-2930 to Shire’s existing treatments for HAE, Cinryze and Firazyr. Shire believes that Dyax’s DX-2930 could potentially expand the number of patients treated for HAE and achieve annual global sales of as much as $2 billion.
The deal is expected to close by the first half of 2016 and is still subject to the customary regulatory approvals. Dyax stock is trading just under the $37.50 bid price in this morning’s premarket, indicating shareholders are on board with the deal.
Other News About DYAX
Dyax Corp. Announces Third Quarter 2015 Financial Results
Company reported a net loss of -0.08 per share or -$11.7 million.
Dyax Corp. Announces Cancellation of Research and Development Day
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