Xeris Pharmaceuticals Inc (NASDAQ: XERS) Merges With Strongbridge To Form Xeris Biopharma Holdings, Inc

The stock of Xeris Pharmaceuticals Inc (NASDAQ: XERS) declined by a margin of 4.57% to eventually settle at $3.87. Xeris moves into a definitive agreement with Strongbridge, eventually taking up the company both in contingent value rights (“CVRs”) and stock.  The agreement places a price tag of about $267 million on Strongbridge. The Xeris common stock, as per the closing on May 21, 2021, stood at $3.47.

The transaction and its conditions

The transaction enjoyed unanimous approval, although Managing Director Jeffrey W. Sherman absconded the voting exercise. These two companies’ boards of directors voted in favor of the deal, and the deal might be sealed within the fourth quarter of 2021. However, it will only go through if it satisfies all the closing conditions. 

The new deal gives birth to the newly-formed entity taking up Biopharma Holdings, Inc. (“Xeris Biopharma Holdings”).

The deal’s closing terms allow the Strongbridge shareholders to get 1 non-tradeable CVR for every single ordinary share they have in the company. However, several triggering events must prevail. A good example is for the U.S. Food & Drug Administration’s Orange Book to list one or more patents for KEVEYIS®.

Shareholders and what they stand to gain

Most of the shareholders have been seeking out clarity about the payments. They want to know how matters go regarding the correlation in terms of the minimum and the maximum payments on the CVR per Strongbridge ordinary share. It is a zero on the minimum end and $1.00 in cash on the maximum end. 

It might soon be the time to close the transaction, and most Xeris shareholders know what to expect. This side of the divide will probably be entitled to about 60% of the combined company. The remaining 40% will be channeled to the Strongbridge shareholders.

Chief Executive Officer of Xeris Paul R. Edick considers the transaction in question a rather compelling one. He is impressed by Strongbridge’s capabilities and attractive rare disease portfolio and looks forward to better times ahead.

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