Raptor Pharmaceutical (RPTP) Stock Soars on Horizon Pharma Buyout
Shares of Raptor Pharmaceutical Corp. (RPTP) were trading up +1.48 or +19.87 percent to $8.93 per share in Monday’s premarket. The company announced early this morning that it had entered into a definitive agreement to be taken over by Horizon Pharma plc (HZNP). Raptor Pharmaceutical Corp. stock closed at $7.45 per share, down -0.17 or -2.23 percent in Friday’s regular trading session.
Novato, California based Raptor Pharmaceutical Corp is a biopharmaceutical company that focuses on developing and commercializing life altering therapies for the treatment of rare, debilitating and often terminal diseases.
Horizon Pharma plc is based in Dublin, Ireland and is a biopharmaceutical company which develops and markets its products through its subsidiary companies in the United States. The company identifies, develops and acquires medications that address unmet medical needs specifically for treating pain, inflammatory diseases and arthritis. Horizon’s product portfolio includes Actimmune (interferon gamma), Pennsaid (diclofenac, 2% topical), Deuxis (ibuprofen & fomotidine) and Rayos/Lodotra (prednisone).
This morning, the companies announced their definitive agreement for Horizon Pharma plc to pay $9.00 per share in cash for all common stock of Raptor Pharmaceutical Corp. The deal has an implied fully diluted equity value of about $800 million and the transaction is expected to close in the fourth quarter of 2016.
President and Chief Executive Officer of Raptor Pharmaceutical Corp., Julie Anne Smith stated in the company’s press release that, “This transaction will deliver significant and immediate value to our shareholders through a compelling all-cash premium and provide ongoing value to our patients, their families and the physicians who treat them. On behalf of the Board and management team, I extend our deepest gratitude to everyone at Raptor for their unrelenting commitment to advancing the development of our medicines and their tireless work with the patients we serve.”
The deal will include Raptor’s two main products, Procysbi and Quinsair, which are a large part of Raptor’s total net sales guidance for the full 2016 year of $125 million to $135 million. Horizon will benefit by strengthening its orphan business in the United States and the European Union and will provide the company with accelerated revenue growth.
Timothy P. Walbert, Chairman, President and Chief Executive Officer of Horizon Pharma plc stated that,
“Along with the potential for accelerated revenue growth, the addition of Raptor strengthens our U.S. orphan business and provides a platform to expand our orphan business in Europe and other key international markets. We look forward to working with new patient communities and building on the success of the Raptor team.” The deal has been unanimously approved by the board of directors of both companies and is subject to the customary closing conditions and regulatory approvals, including U.S. antitrust approval.
Other News About RPTP
Raptor Pharmaceutical Presents Results from Meta-Analysis Demonstrating Efficacy of QUINSAIR™ Comparable to Other Approved, Inhaled Antibiotics in Cystic Fibrosis Patients
Quinsair proved its efficacy compared to three other inhalable antibiotics.
Raptor Soars After Retrophin Is Said to Consider Bid
Raptor was already a takeover target last month.
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