M&A news: Cubist Pharmaceuticals, and Trius Therapeutics have signed a definitive agreement under which Cubist will acquire all outstanding shares of Trius for $13.50 per share in cash or approximately $707 million on a fully diluted basis.
In addition to the upfront cash payment, each Trius stockholder will receive one Contingent Value Right (CVR), entitling the holder to receive an additional cash payment of up to $2.00 for each share they own if certain commercial sales milestones are achieved.
The total transaction is valued at up to $818 million on a fully diluted basis.
The transaction has been approved by the Boards of Directors of both companies.
Trius brings to Cubist, a big biotech company, a highly complementary, late-stage antibiotic candidate, tedizolid phosphate (TR-701), as well as several pre-clinical antibiotic programs.
Tedizolid phosphate is an IV and orally administered second generation oxazolidinone in development for the potential treatment of certain Gram-positive infections, including methicillin-resistant Staphylococcus aureus (MRSA).
The terms of the non-tradable CVR include an additional payment of up to $2.00 if certain sales milestones are achieved.
The CVR will entitle each Trius stockholder to receive $1.00 per share if net sales of tedizolid in the U.S., Canada and Europe are greater than or equal to $125 million in 2016 and up to an additional $1.00 per share, paid on a pro rata basis, for 2016 net sales between $125 million and $135 million.
For further deal information visit Current Agreements (subscription required)
Related
Read: more on Cubist company profile, recent partnering, M&A and financing news and articles
Read: more on M&A deals in pharma, biotech, life science partnering deal news, insights and glossary
Report: Merger and Acquisition Terms and Agreements
Report: Partnering Agreements with Cubist 2005-2013
View: Top 50 pharma – overview of top 50 pharmaceutical companies by revenue – partnering activity, deal news, partnering dealtalk
View:Top 50 biotech – overview of top 50 biotechnology companies by revenue – partnering activity, deal news, partnering dealtalk
View: Current Partnering’s M&A Scorecard – view top life science M&A deals by value
View: Current Partnering’s Deal Metrics – the latest deal trend infographics for life science deal making
View: Current Partnering’s Big Pharma Deal Making Scorecard – latest trends in big pharma deal making activity
View: Current Partnering’s Big Biotech Deal Making Scorecard – latest trends in big biotech deal making activity
Signup: Current Partnering Dealmakers Update – weekly newsletter providing the latest life science industry deal news, deal making trends, partnering events – sign up now
Signup: Current Agreements Deals Review – monthly newsletter – reviewing the previous month’s life science deal making – partnering, M&A and financing – sign up now
Subscribe: Current Agreements life sciences partnering, M&A and financing deals database – find out more
Follow us on: LinkedIn Current Partnering | LinkedIn Business Development Network | @Currentpartner on Twitter
