BioSpecifics Technologies (BSTC) Stock Soars On Acquisition

BioSpecific Technologies BSTC Stock News

BioSpecifics Technologies Corp. (NASDAQ: BSTC) is screaming for the top in the market this morning, and for good reason. The company announced that it will be taken over in a deal with an incredible premium. Her’es what’s going on:

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BSTC Stock Rockets On Acquisition News

In the press release, BioSpecifics Technologies said that it entered into a definitive merger agreement with Endo International (NASDAQ: ENDP). Under the terms of the agreement, Endo will acquire BioSpecifics in a deal worth about $658 million, or $540 net of cash on hand. The deal is expected to close at a price of $88.50 per share.

BSTC said that the transaction has been unanimously approved by the Boards of Directors of both companies. As a result, the transaction is expected to close during the fourth quarter of 2020.

In a statement, Joseph Truitt, CEO at BSTC, had the following to offer:

BioSpecifics Technologies Corp. pioneered the development of collagenase-based therapies, which has resulted in a robust injectable collagenase (CCH) portfolio, consisting of XIAFLEX® to treat the vast number of diseases and medical conditions caused by the excess accumulation of collagen and Qwo™ for the treatment of cellulite.

The above statement was followed up by Jennifer Chao, Chairman of the Board at BSTC. Here’s what she had to say:

Today’s announcement marks a great outcome for all BioSpecifics stakeholders, and is the result of the Company’s successful value creation strategy executed by the management team and the Board of Directors. The Company has worked tremendously hard to deliver this excellent result and is grateful for the abiding support of its employees, partners and shareholders.

This Is Big News

The news released by BioSpecifics this morning proved to be overwhelmingly positive. Not only will the company be acquired by Endo, the premium being paid is massive. Don’t forget, the most recent closing price on the stock was just $61.02. With a closing price on the transaction of $88.50 per share, the deal represents a premium of more than 45%.

The deal announced this morning isn’t just an acquisition, it’s a massive return of value for shareholders of BSTC stock.

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