California-based pharmaceutical company SteadyMed Ltd. (NASDAQ:STDY) announced on Monday that they are being acquired by the biotechnology company United Therapeutics Corp. (NASDAQ:UTHR).
United will be purchasing SteadyMed for 4.46 per share in cash, or approximately USD $216 million.
One of the products from SteadyMed that United is optimistic to add to their pipeline is Trevyent.
Trevyent is a development-stage drug-device combination that is meant to help with the treatment of pulmonary arterial hypertension (PAH).
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Both companies are looking forward to the results of the agreement, which should be completed sometime during the third quarter of 2018.
According to Martine Rothblatt, the Chairman and CEO of United, the company is “optimistic about acquiring SteadyMed and adding Trevyent to [their] pipeline of products to treat PAH.”
SteadyMed`s Board of Directors has unanimously approved the agreement and shareholders voted in favor of it, as well.
President and CEO of SteadyMed, Jonathan M.N. Rigby believes that “United Therapeutics has always been at the forefront of developing therapies to treat PAH, and [SteadyMed] [is] delighted at the prospect of [the two] companies coming together, as one, to continue that mission.”
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Rothblatt also believes that Trevyent will fit in with United’s mission, while Rugby believes that the transaction between the two companies will help to make Trevyent available to the public, in order to improve the lives of patients with PAH.
Shares of SteadyMed Ltd went soaring up over 75% on Monday after the announcement was made. The company closed at a value of $4.70, which was higher than what United is purchasing it for.
SteadyMed closed at a share value of $2.65 on Friday.
Shares of United fell 0.26% and closed at $110.11.
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