Teva acquires Auspex in £2.2bn deal
Shares in US-based biopharmaceutical company Auspex Pharmaceuticals surged over 40% on Monday, after it accepted a takeover offer from sector peer Teva Pharmaceutical.
The deal, thought to be worth approximately $3.2bn (£2.2bn), will see Teva pay $101 a share in cash for each outstanding Auspex share, which represents a 42% premium on Friday’s close price of $70.91.
The New York-listed company said it expected the deal to have a slight negative impact on earnings per share in 2015 and in 2016, when the acquisition is first expected to be a factor in revenue, while its first contribution to adjusted earnings is estimated for 2017.
Israel-based Teva said the deal will be "meaningfully accretive" from 2017 onwards, adding it estimated sales of $2bn from Auspex products in 2020 and that it expected the deal to be closed in mid-2015.
As of 10:51 in New York on Monday, Teva shares were up 1.77% to $63.07, while Auspex Pharmaceuticals shares jumped 41.76% to $100.52.