Zogenix, Inc. (NASDAQ: ZGNX) operates as a global biopharmaceutical company, which is focused on the research, development, and commercialization of novel therapies to treat an array of rare diseases. Shares of the biopharma company are skyrocketing 67% through early trading on Wednesday, January 19, 2022. Over the past three months, Zogenix has seen average daily volume of 635,620 shares. However, volume of 16.96 million shares or dollar volume of around $443.84 million, has already exchanged hands through early trading.
Shares of Zogenix are soaring after the company announced it has entered into a definitive agreement to be acquired by UCB (Euronext: UCB). Under the terms of the agreement, UCB will purchase all outstanding shares of Zogenix at a price per share of $26.00, plus a contingent value right (CVR) for additional cash payment of $2.00 if the EU approved FINTELPLA as an orphan medicine for the treatment of Lennox-Gastaut syndrome by December 31, 2023. This gives the transaction a total aggregate value of up to $1.9 billion. For Zogenix shareholders, the offer represents a 72% premium on a 30-day VWAP.
With the acquisition of Zogenix, UCB bolsters its pipeline portfolio of treatments for unmet medical needs. FINTEPLA is one of the therapies that UCB will be adding to its portfolio, which is already approved by the U.S. FDA. The acquisition is estimated to be a significant enhancement to UCB’s top-line growth beginning in 2023.
“We are delighted to announce UCB’s proposed acquisition of Zogenix, recognizing the value of our lead medicine, both for the important role it has already begun to play for Dravet patients and their caregivers, and for its potential to help many others in the future,” said Stephen J. Farr, PhD, President and Chief Executive Officer of Zogenix. “We are excited for the potential opportunities ahead of us, working together to accelerate our mission and progress to improve the care of patients in need of new therapies. We believe this transaction is in the best interests of both patients and our shareholders.”
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