Steadymed Ltd (NASDAQ: STDY) is having an overwhelmingly strong start to the trading session this morning after announcing that it would be acquired. Of course, the acquisition came at a very strong premium, and news of the acquisition is exciting investors, sending the stock screaming for the top. Today, we’ll talk about:
- The acquisition;
- what we’re seeing from STDY as a result;
- and what we’ll be watching for ahead.
STDY Heads For The Top On Takeover News
As mentioned above, Steadymed is having an incredibly strong start to the trading session this morning after announcing that it would be acquired. In a press release issued early this morning, the company announced that it has entered into a definitive agreement with United Therapeutics Corporation (NASDAQ: UTHR). Under the terms of the agreement, United Therapeutics will acquire SteadyMed for a price of $4.46 per share at closing as well as an additional $2.63 per share in cash upon the achievement of milestones related to the commercialization of Trevyent®. In the release, STDY said that the agreement also including the $75 million in contingent consideration, comes to a total value of $2.16 million. In a statement, Martine Rothblatt, Ph.D., Chairman and CEO at UTHR, had the following to offer:
We are optimistic about acquiring SteadyMed and adding Trevyent to our pipeline of products to treat PAH… We are especially impressed with SteadyMed’s management team and global supply chain. Trevyent fits in well with our mission, and we look forward to bringing the product to the maximum number of patients as soon as possible.
The above statement was followed up by Jonathan M.N. Rigby, President and CEO at STDY. Here’s what he had to offer:
United Therapeutics has always been at the forefront of developing therapies to treat PAH, and we are delighted at the prospect of our companies coming together, as one, to continue that mission… We believe that this proposed acquisition will help us realize our commitment to bring Trevyent to market to improve the lives of patients with PAH.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news causes moves. In this particular case, the news surrounding Steadymed proved to be overwhelmingly positive. Not only is the company going to be acquired, but it will be acquired at a strong premium, instantly returning incredible value to shareholders. So, it’s no surprise to see that the stock is making a run for the top in the market today. At the moment (9:13), STDY is trading at $4.65 per share after a gain of $2.00 per share or 75.47% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on STDY. In particular, we’re interested in following the story surrounding the acquisition. While both boards of directors have unanimously approved the transaction, it is still subject to customary closing conditions as well as regulatory approval. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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