PTC Therapeutics Inc. (NASDAQ: PTCT) shares made a handy gain on Friday after the firm announced that it would be acquiring Agilis Biotherapeutics. The transaction was approved by the boards of directors of both companies and is expected to close in the third quarter of 2018.
Under the terms of the merger agreement, PTC will pay an upfront consideration of $50 million in cash and roughly $150 million in PTC common stock, subject to an estimated maximum 9.34 million share limit.
In addition to the upfront payments, potential future consideration includes $60 million in development milestones to be paid over the next two years, which includes the acceptance of a BLA. Additionally, the transaction includes up to $535 million in success-based milestones in connection with regulatory approvals on the three most advanced programs and receipt of a priority review voucher, as well as tiered commercial milestones of $150 million, and 2% to 6% of annual net sales for Friedreich ataxia and Angelman syndrome.
Stuart W. Peltz, Ph.D., CEO of PTC, commented:
The addition of the gene therapy platform transforms PTC and aligns with our vision of being a leader in the treatment of rare disorders. We are impressed with the clinical results shown by the AADC program and are excited with the potential to quickly bring this therapy to patients. We look forward to advancing the Friedreich ataxia and Angelman syndrome programs into the clinic in the next two years.
Shares of PTC were last seen up about 9% at $39.96, with a consensus analyst price target of $35.67 and a 52-week trading range of $14.56 to $52.95.
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