Prior to the U.S. markets opening today, biopharmaceutical company BioSpecifics Technologies Corp. (BSTC:NASDAQ), which focuses on development of collagenase-based therapies, announced that it has "entered into a definitive merger agreement under which Endo International Plc (ENDP:NASDAQ) will acquire BioSpecifics for an estimated equity value of approximately $658.0 million ($540.0 million in enterprise value net of cash on hand), or $88.50 per share in cash." The company stated that the transaction is expected to close during Q4/20 and has already been unanimously approved by each of the firms' Board of Directors.
BioSpecifics CEO Joseph Truitt commented, "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."
Jennifer Chao, chair of the Board of Directors of BioSpecifics Technologies, remarked, "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."
The company noted the merger agreement terms stipulate that through a wholly owned subsidiary, Endo International will commence an all-cash tender offer for 100% of all outstanding BioSpecifics common stock shares at a price of $88.50 per share. The firm noted that the deal still remains subject to acceptance by a majority BioSpecifics' shareholders (shares) and customary closing conditions, waiting periods and regulatory approval.
BioSpecifics Technologies is a commercial-stage biopharmaceutical company that develops collagenase-based therapies. According to the company, collagenases are naturally occurring enzymes that are responsible for breaking down collagen. The firm stated that it "discovered and developed a proprietary form of injectable collagenase (CCH), which is currently marketed by its partner, Endo, as XIAFLEX® in North America for the treatment of Dupuytren's contracture and Peyronie's disease."
Endo International is a specialty pharmaceutical company based in Dublin, Ireland. The firm has market cap of about US$1.1 billion and its U.S. operations are headquartered in Malvern, Pa.
Biospecifics Technologies began the day with a market capitalization of around $448.2 million with approximately 7.345 million shares outstanding and a short interest of about 3.2%. BSTC shares opened 44% higher today at $88.15 (+$27.13, +44.46%) over Friday's $61.02 closing price and reached a new 52-week high price this morning of $88.45. The stock has traded today between $88.05 and $88.45 per share and is currently trading at $88.42 (+$27.40, +44.90%).[NLINSERT]
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