Why Juniper Pharmaceuticals Shares Jumped
Juniper Pharmaceuticals shares jumped early on Tuesday after the company announced that it would be acquired by Catalent.
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.
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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.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
