Belgian-based UCB SA (OTC:UCBJF) has agreed to buy Zogenix Inc (NASDAQ:ZGNX), a U.S. maker of drugs to treat seizures and rare diseases, for $1.9 billion, expanding its portfolio to treat epilepsy.
- Investors will get $26 in cash for every Zogenix share, plus a potential $2 per share payment if Zogenix's Fintepla drug gets regulatory approval for Lennox-Gastaut syndrome by the end of 2023.
- The initial payment is 66% higher than Tuesday's closing price of $15.64.
- Lennox-Gastaut syndrome is an orphan disease that causes seizures.
- Related: Zogenix's Fintepla Shows Long-Term Seizure Frequency Reductions In Childhood Epilepsy.
- Fintepla has already received regulatory approval in the U.S. and European Union for seizures caused by Dravet syndrome, a rare form of epilepsy.
- UCB said it would finance the deal with cash and a new term loan.
- In addition to contributing to UCB's revenue growth after closing, the Zogenix deal is expected to be accretive to UCB's earnings from 2023 onwards.
- Lazard and Barclays are UCB's financial advisors, while Bank of America Securities and SVB Leerink advised Zogenix.
- Price Action: ZGNX shares surged 59.9% at $25.00 during the premarket session on the last check Wednesday.
