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Source: Shutterstock.comAerie Pharmaceuticals (NASDAQ:AERI) stock is rising higher on Tuesday following news of an acquisition deal with Alcon (NYSE:ALC).
Alcon is agreeing to acquire Aerie Pharmaceuticals for $770 million. That works out to $15.25 per share, which is a 37% premium to AERI stock’s closing price on Monday. It will fuel the transaction with short-term and long-term debt.
Alcon expects several benefits from its deal with Aerie Pharmaceuticals. That includes adding Rocklatan and Rhopressa to its list of commercial products. It will also gain AR-15512, a dry eye disease treatment currently in its Phase 3 clinical trial.
Alcon also notes that Aerie Pharmaceuticals’ glaucoma franchise is expected to produce revenue of $130 million to $140 million in 2022. This has the company expecting the acquisition to be accretive to its diluted earnings per share starting in 2024.
Raj Kannan, CEO of Aerie Pharmaceuticals, said this about the deal.
“Alcon’s global infrastructure, financial resources, and commercial capabilities will accelerate the standard of care by helping more patients have access to Aerie’s innovative products. I am confident that this combination with Alcon is in the best interest of patients and our shareholders.”
Aerie Pharmaceuticals’ Board of Directors has already signed off on the deal. Now it just needs approval from regulators and holders of AERI stock. If all goes well, the two companies expect the acquisition to close in the fourth quarter of 2022.
News of the acquisition has AERI stock seeing heavy trading today. As of this writing, more than 15 million shares have changed hands. That’s well above its daily average trading volume of about 645,000 shares.
AERI stock is up 35.2% as of Tuesday morning.
Investors looking for more of the latest stock market news are in the right place!
InvestorPlace is home to all of the hottest stock market news for Tuesday! Among that is what’s moving Starbox Group (NASDAQ:STBX), Marin Software (NASDAQ:MRIN), and Zoom (NASDAQ:ZM) stock. You can get all the details from the following links!
More Tuesday Stock Market News
- STBX Stock Alert: What to Know as Starbox Group Starts Trading
- What Is Going on With Marin Software (MRIN) Stock Today?
- Zoom (ZM) Stock Plunges 10% as Q2 Revenue Disappoints
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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