Juniper Pharmaceuticals Inc. (NASDAQ: JNP) shares rallied early on Tuesday after the company announced that it would be acquired by Catalent. The transaction is expected to close in the third quarter of 2018.
Catalent will acquire all outstanding shares of Juniper for $11.50 apiece in a tender offer. The transaction represents a total equity value of approximately $139.6 million on a fully diluted basis and a premium of 59.7% to Juniper’s unaffected share price on January 30, 2018, the last trading day prior to the date on which Juniper announced its intention to explore strategic alternatives.
The transaction also is offering a premium of 32% and 58% to the 50-day and 200-day moving averages of $8.70 and $7.25, respectively.
This deal has been unanimously approved by the Juniper board of directors following the recommendation of a special committee of independent directors. The board believes that this is the culmination of a diligent and extensive process to pursue strategic alternatives in order to maximize shareholder value.
Jonathan Arnold, president of Catalent Oral Drug Delivery, commented:
Juniper’s expertise and capabilities in pharmaceutical services will further support Catalent’s strategic goal to be the comprehensive partner of choice for pharmaceutical innovators. Juniper’s proven scientific expertise in early-phase product development and supply-chain management will help our customers unlock the full potential of their molecules and provide better treatments to patients, faster.
Shares of Juniper traded early Tuesday at $11.40, a gain of about 31% on the day. The consensus analyst price target is $20.00, and a 52-week trading range of $4.30 to $13.25.