BLU - Biopharma stock Bellus Health almost doubled today: find out why
2023-04-18 13:37:57 ET
Shares of Bellus Health Inc ( NASDAQ: BLU ) almost doubled this morning after GSK plc ( LON: GSK ) said it will buy the biopharmaceutical company for about $2.0 billion.
Details of the announced acquisition
The all-cash agreement values Bellus Health shares at $14.75 that translates to more than a 100% premium on their previous close.
GSK is primarily interested in Bellus for Camlipixant – its treatment for refractory chronic cough. According to Luke Miels, the Chief Commercial Officer of the British multinational:
Camlipixant has potential to be a best-in-class treatment with significant sales potential. This proposed acquisition complements our portfolio of specialty medicines and builds on our expertise in respiratory therapies.
GSK expects the takeover to be accretive to its adjusted EPS from 2027 and deliver a meaningful boost to sales through 2031 and beyond.
Deal is yet to win shareholders’ approval
The said transaction is subject to meeting customary closing conditions, including regulatory and shareholders’ approval. In the press release , Bellus CEO Roberto Bellini said:
This acquisition recognises the value of our highly selective P2X3 antagonist Camlipixant. GSK is he ideal company to rapidly bring Camlipixant to millions suffering from refractory chronic cough around the world.
The stock market news arrives nearly a month after the Canadian drug development company reported $76.1 million in net loss for 2022.
GSK left its full-year and medium-term guidance for profit and revenue unchanged on Tuesday. Unlike Bellus Health shares, GSK stock ended marginally down today.
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