Today, Cubist Pharmaceuticals Inc. signed a definitive agreement to acquire all outstanding shares of its common stock of Trius Therapeutics Inc. The acquisition deal was priced at USD13.50 per share piece in cash or a total of USD707 million.
Each Trius stockholder will receive an additional USD2.00 for each share they own as stated in the Contingent Value Right (CVR) clause. The additional payment was to be made after certain milestones in sales were reached.
The Board of Directors of each company has approved the merger of Cubist and Trius. The transaction is expected to be completed by the end of this year pending regulatory approvals and other conditions. The non-tradable CVR includes an additional payment of US$1.00 a piece if tedizolid reached certain milestones in US, Europe and Canada equal to USD125 million by 2016. Another USD1.00 will be given on pro rata basis between the net sales for 2016 that would be between USD125 million and USD135 million.
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