Endo Health Solutions Inc entered an agreement to acquire pharmaceutical firm NuPathe Inc to gain its new migraine treatment. The said transaction is valued at $105 million, according to The Wall Street Journal.
Under the terms of the deal, Endo will acquire NuPathe's shares at $2.85 apiece. This is a 24% premium to its Friday close at $2.30. NuPathe shareholders will be able to receive further cash payments of up to $3.15 for every share if the company's Zecuity medicine hits a certain target, the report detailed.
NuPathe's new migraine treatment, Zecuity, received approval from the U.S. Food and Drug Administration (FDA) at the beginning of the year. Endo said this is the first migraine patch approved by the FDA. Endo Chief Executive Rajiv De Silva said they plan to launch the treatment in early 2014 after the deal is closed next year, the report explained.
De Silva said of the transaction: "The acquisition of NuPathe enhances our branded pharmaceutical portfolio and is well aligned with our strategy of acquiring late-stage products for commercialization."
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