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Radius Health Inc (NASDAQ: RDUS) will be acquired by Gurnet Point Capital and Patient Square Capital in a transaction valued at approximately $890 million, including the assumption of debt and assuming full payment of the CVR (Contingent Value Right).
Gurnet Point and Patient Square will pay $10.00 per share in cash plus a CVR of $1.00 per share payable upon Tymlos (abaloparatide) net sales reaching $300 million by 2025.
The FDA approved Tymlos for postmenopausal women with osteoporosis at high risk for fracture.
Other products in Radius' pipeline include abaloparatide injection for men with osteoporosis, elacestrant (RAD1901) for hormone-receptor-positive breast cancer out-licensed to Menarini Group, and RAD011, a synthetic cannabidiol oral solution for neurological indications.
Including the CVR payment, Radius shareholders will receive up to $547 million in cash.
"The acquisition of Radius by Gurnet Point and Patient Square provides our shareholders with attractive, immediate value at a compelling premium, in addition to the potential future upside of TYMLOS through the CVR," said Owen Hughes, Chairman of Radius Health.
The transaction is expected to close in the third quarter of 2022.
Price Action: RDUS shares are 14.2% at $10.13 during the market session on the last check Thursday.
Photo by Capri23auto from Pixabay
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