So basically two companies have told us that PATH is worth around $6 per share. Everyone who cashes out basically puts money in TEVA's pocket. If you tender your shares, you stand to get your $6. The big question is, Who will step up to the plate and just give the cash offer? Would you really give up the rights to own the patents on this delivery system by not giving a cash offer? Why take the risk? They are weeding out the weak hands.
NuPathe Terminates Agreement With Endo and Enters Into Agreement to Be Acquired by Teva
MALVERN, PA--(Marketwired - January 21, 2014) - NuPathe Inc. (NASDAQ: PATH) today announced that it has terminated its agreement and plan of merger with Endo Health Solutions Inc. and its Board has withdrawn its recommendation that stockholders accept Endo's offer to acquire all outstanding shares of NuPathe common stock. NuPathe has also entered into an agreement and plan of merger with Teva Pharmaceutical Industries Ltd. (NYSE: TEVA) under which Teva will acquire NuPathe for $3.65 per share in cash. In addition to the upfront cash payment, NuPathe stockholders will receive rights to receive additional cash payments of up to $3.15 per share if specified net sales of NuPathe's migraine treatment, ZECUITY®, are achieved over time.
"Teva's offer represents a premium of $0.80 per share (28%) over the upfront cash consideration offered by Endo, with equal contingent cash consideration," stated Armando Anido, chief executive officer of NuPathe. "As a recognized leader in the field of diseases of the central nervous system, we believe that Teva is well-positioned to maximize ZECUITY'S potential."
Under the terms of the agreement, an affiliate of Teva will promptly commence a tender offer to acquire all outstanding shares of NuPathe's common stock for $3.65 per share in cash and the right to receive contingent cash consideration payments of up to $3.15 per share if specified net sales thresholds for NuPathe's ZECUITY are achieved. The contingent cash consideration payments, which will not be publicly traded, are as follows:
$2.15 per share in cash payable upon net sales of ZECUITY of at least $100 million in any four consecutive calendar quarters, on or prior to the 60th day following the ninth anniversary of the date of the first commercial sale of ZECUITY; and
$1.00 per share in cash payable upon net sales of ZECUITY of at least $300 million in any four consecutive calend
Looks like the tendering of shares will now start with TEVA. ENDO is out of the picture. Not sure what this means for the future. Another offer? Any thoughts?
Looking forward to good news premarket. Hope we are done playing games and we can finally get a solid all cash offer or at least some great news from PATH. Hope they are working hard this weekend to do the right thing for shareholders.
Ahhh. Here come the cockroaches. Somebody must have turned out a light in the kitchen. Plenty of light in the rest of the house though.
Schwab still has the deadline of January 17th to tender shares which makes zero sense.
Called Schwab as well. Their deadline is still January 17th which makes no sense to me. Why would they keep the same deadline if their is a better offer on the table. The Schwab representative that it did not make sense to him as well if there were two companies interested in purchasing Nupathe. I was not sure whether he meant ENDO and TEVA or perhaps he meant there was an additional company interested. In any case, do not tender your shares!!!
Speaking of flying pigs, say hi to your mom for me.
Sentiment: Strong Buy