Ra Pharmaceuticals Inc (NASDAQ: RARX) is easilly the highest flying stock in the market today. The stock is up more than 100% after announcing that it has entered into an agreement to be acquired. Here’s what’s happening:
RARX Stock Soars On Acquisition News
In a press release issued early this morning, Ra Pharmaceuticals said that it has entered into a merger agreement with UCB. According to the merger agreement, UCB will acquire Ra Pharma in an all cash deal.
The deal values RARX stock at $48 per share, which will be paid cash at closing. At this price, UCB is offering up a more than 100% premium to yesterday’s closing price.
In the release, the company said that the Boards of Directors of both companies have unanimously approved the transaction. However, the transaction is still subject to approval by RARX shareholders.
Moreover, the company said that the transaction is also subject to antitrust clearance and other customary closing conditions.
The deal comes on the back of positive Phase 2 data surrounding zilucoplan. The data suggest that the treatment leads to significant improvement in patients with generalized myasthenia gravis.
At the moment, Zilucoplan is under Phase 3 clinical studies with top-line results expected in early 2021. It is believed that the drug will lead to strong efficacy in other conditions as well. In a statement, Jean-Christophe Tellier, CEO at UCB, had the following to offer with regard to the acquisition:
Ra Pharma is an excellent strategic fit addressing multiple areas of UCB’s patient value growth strategy. Upon closing, the acquisition will add to our strong internal growth opportunities – six potential product launches in the next five years, strengthening our neurology and immunology franchises with late and early-stage pipeline projects. In addition, the combination will provide us with the opportunity to become a leader in treating people living with myasthenia gravis, an auto-antibody mediated neurological orphan disease with high unmet medical need, as well as adding a highly productive technology platform to our innovation engine.
Why Investors Are So Excited
Nothing seems to lead to investor excitement quite like acquisition news. In this particular case, there are several reasons to be excited. These include, but are not limited to:
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