Shares of biopharmaceutical company Spectrum Pharmaceuticals (NASDAQ:SPPI) are on the surge today after Assertio Holdings (NASDAQ:ASRT) agreed to acquire Spectrum in an all-stock and contingent value rights (CVR) deal.
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Assertio is a specialty pharmaceutical products provider and the move is expected to boost the profitability and market access for Spectrum’s Rolvedon injection (launched in October 2022).
Under the agreement, Spectrum shareholders will receive Assertio shares at a fixed ratio of 0.1783 for each share held by them. This represents a 65% premium over Spectrum’s April 24 closing price. Further, Spectrum shareholders will also receive one CVR per share for a total potential premium of 94% (up to $1.34 per share).
The transaction is anticipated to close in the third quarter of 2023 after which Spectrum stockholders will own about 35% of the combined entity.
Today’s price gains further build up on the 81.6% rise in Spectrum shares so far in 2023. ASRT shares, on the other hand, have declined 13% in the pre-market session today already.
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