Lilly to Buy Prevail Therapeutics for Up to $1.04 Billion
15 Diciembre 2020 - 6:17AM
Noticias Dow Jones
By Dave Sebastian
Shares of Prevail Therapeutics Inc. rose 88.4% in premarket
trading after Eli Lilly & Co. agreed to buy the company for up
to $1.04 billion, or $26.50 a share, in cash, giving Lilly access
to Prevail's set of gene therapies for Parkinson's and other
neurodegenerative diseases.
The deal value comprises about $880 million, or $22.50 a share,
in cash, the companies said Tuesday. The other $160 million in
contingent value right, or $4 a share, would be paid upon the first
regulatory approval of a product from Prevail's pipeline, which
also includes gene therapies for dementia, Alzheimer's and
neuronopathic Gaucher disease.
To get the additional payment under the agreement, the Prevail
product must win approval in the U.S., Japan, the U.K., Germany,
France, Italy or Spain by the end of 2024, the companies said. If
the approval occurs after 2024, the contingent value right will be
cut by about 8.3 cents a share per month until Dec. 1, 2028, the
companies said.
At the expected closing in the first quarter, the deal would
amount to an 80% premium over Prevail's closing price of $12.50 on
Monday. If Prevail gets the full $160 million in contingent value
right, the premium would be 112%.
Write to Dave Sebastian at dave.sebastian@wsj.com
(END) Dow Jones Newswires
December 15, 2020 07:02 ET (12:02 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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