Innoviva Bolsters Its Infectious Disease, Hospital Portfolio With La Jolla Deal
Innoviva Inc (NASDAQ: INVA) has agreed to acquire La Jolla Pharmaceutical Company (NASDAQ: LJPC) for $5.95 per share, representing a premium of approximately 70% to the 30-day volume-weighted average price.
Innoviva will also pay an incremental $0.28 per share for additional cash proceeds received in connection with the divestiture of a non-core asset.
The deal consideration of $6.23 per share in cash has an implied enterprise value of approximately $149 million.
The FDA approved La Jolla's lead product, Giapreza in December 2017 to increase blood pressure in adults with septic or other distributive shocks.
La Jolla's second asset, Xerava (eravacycline), was approved by the FDA in August 2018 for complicated intra-abdominal infections.
This acquisition strengthens Innoviva's portfolio in infectious diseases, anchored by the company's recent purchase of Entasis Therapeutics Holdings Inc.
Price Action: LJPC shares are up 81.4% at $6.15 premarket on the last check Monday.
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