In a $5.9 billion deal, Astellas Pharma and Iveric Bio will combine their Berry Merger business units.
Based on the terms of the deal, each ISEE share will be valued at $40 in cash, which represents a 64% premium over Iveric Bio’s unmodified closing share price of US$24.33 on March 31, 2023.
“We are pleased to have reached an agreement with Iveric Bio, a company with exceptional expertise in the R&D of innovative therapeutics in the ophthalmology field,” stated Naoki Okamura, president, and CEO of Astellas.
The transaction is anticipated to close in the second quarter of Astellas’ 2023 fiscal year (the third quarter of 2023’s calendar year), according to the two firms.
Iveric Bio’s CEO, Glenn P. Sblendorio, stated that the deal with Astellas, a well-known pharmaceutical firm, “demonstrates the significant value we have built for our stockholders and recognizes the tremendous work by our dedicated team at Iveric Bio.”
According to Stifel analysts, Astellas is getting “a successful GA program and the ability to shape a commercial effort.”
“Considering some of the bigger players in retinal illness, Astellas was not the most apparent partner. Nevertheless, in light of Astellas’ strategic objectives, we anticipate this to be a good fit and commend ISEE for finishing this program while locating a partner dedicated to its retinal platform, the analysts wrote in a note.
Iveric shares are trading at $38.75 before the market opens on Monday, an increase of over 18%.
