ALBO - Albireo stock jumps 85% as Ipsen set to acquire it for ~$952M

Ipsen ( OTCPK:IPSEY ) ( OTCPK:IPSEF ) is acquiring Albireo ( NASDAQ: ALBO ) in deal worth about $952M plus one contingent value right (CVR) per share to bolster its rare disease portfolio with treatments for pediatric liver diseases.

Albireo's lead drug is Bylvay (odevixibat) which is approved in the U.S. and EU to treat pruritus (itching) in certain patients with progressive familial intrahepatic cholestasis (PFIC).

Under the agreement, Ipsen, through a subsidiary, will start a tender offer to acquire all outstanding shares of Albireo at $42 per share in cash at closing of the deal, for an initial estimated total consideration of $952M plus one CVR per share.

Each CVR will entitle its holder to deferred cash payments of $10 per CVR payable upon the U.S. Food and Drug Administration (FDA) approval of Bylvay in the Biliary Atresia indication by Dec. 31, 2027, allowing for a potential increase in the number of patients in the BOLD study.

"Our Rare Disease franchise is strengthened with Bylvay, which, in addition to being the first-approved treatment in PFIC, has two further indications being investigated in rare liver conditions that are underserved. Additionally, Bylvay and the clinical and preclinical novel bile acid transport inhibitors in Albireo’s portfolio complement our own pipeline in liver disease," said Ipsen CEO David Loew.

Ipsen noted that Albireo has undertaken regulatory filings for Bylvay in the EU and the U.S. for Alagille syndrome (ALGS)

The French drugmaker added that Albireo expects total 2022 revenues of $24M for Bylvay.

Ipsen expects the transaction to be dilutive to its core operating income until the end of 2024.

Albireo's board has approved the transaction and recommended its stockholders to tender their shares in the tender offer.

The transaction is expected to close by end of Q1 2023 and is subject to conditions, including U.S. antitrust clearance, and tender of shares  which represent at least a majority of the total number of Albireo’s outstanding shares.

ALBO +87.25% to $42.73 premarket Jan. 9

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