October 12, 2021 (Investorideas.com Newswire) Flexion Therapeutics Inc. shares traded 60% larger after the corporate reported it entered right into a definitive settlement to be acquired by Pacira BioSciences Inc. for $8.00 per share in money plus an extra non-tradeable contingent worth proper value as much as $8.00 per share in money if 5 particular milestones are met.
Business-stage biopharmaceutical firm Flexion Therapeutics Inc. (FLXN:NASDAQ), which is engaged in growing and advertising native therapies for the remedy of sufferers with osteoarthritis (OA) and different musculoskeletal circumstances, right now announced that it entered right into a definitive settlement to be acquired by Pacira BioSciences Inc. (PCRX:NASDAQ), a agency centered on growing and delivering non-opioid ache administration and regenerative well being options.
Beneath the phrases of the settlement, Pacira BioSciences has agreed to pay Flexion Therapeutics shareholders $8.50 per share in money, together with “one non-tradeable contingent worth proper (CVR) value as much as $8.00 per share in money.” The corporate defined that the CVR is conditioned upon assembly a number of gross sales and regulatory milestones.
Flexion concentrates it actions on growing native non-opioid therapies for OA, postsurgical ache and decrease again ache. The agency acknowledged that its main product, ZILRETTA® (triamcinolone acetonide extended-release injectable suspension) is the primary and solely FDA-approved remedy for OA knee ache that makes use of extended-release microsphere know-how.
Pacira’s Chairman and CEO Dave Stack commented, “This acquisition is a serious milestone in our technique to construct a strong providing of novel, non-opioid therapies to enhance affected person care alongside the neural ache pathway whereas concurrently offering us with a complementary industrial asset in ZILRETTA for the remedy of OA knee ache…We imagine the Flexion portfolio additional solidifies Pacira as a pacesetter in opioid-sparing ache administration as we proceed to redefine the function of opioids as a final resort rescue remedy. Importantly, this acquisition creates diversification and progress to our topline whereas offering what we might anticipate to be significant synergies that ought to end in substantial near- and long-term accretion to our money flows and earnings.”
Flexion’s CEO and Co-Founder Michael Clayman, M.D. remarked, “Pacira shares our dedication to advancing non-opioid ache management and we imagine it’s ideally positioned to drive continued scientific and industrial success of ZILRETTA, FX201, and FX301…This mixture with Pacira gives Flexion stakeholders wonderful prospects for worth creation, significantly because the contingent worth rights present the chance to proceed to profit from the continuing success of Flexion’s merchandise and applications.”
Pacira’s buy of Flexion will present it with entry to a brand new modern non-opioid drug portfolio that’s immediately and nicely suited to its goals of providing opioid options to as many sufferers as doable to handle extreme and continual ache skilled all through the neural ache pathway. Flexion’s non-opioid injection, ZILRETTA, will allow Pacira to ship remedy to alleviate OA knee ache at a lot earlier levels within the remedy course of.
As well as, the acquisition is anticipated to profit Pacira by including “a number of scientific milestones, together with the initiation of a Part 3 registration trial of ZILRETTA in shoulder osteoarthritis and the development of Part 1 research of FX201 for musculoskeletal ache, together with OA, and FX301 as a decrease extremity nerve block for postsurgical ache.”
Upon closing, Pacira famous that it’ll instantly start receiving extra revenues generated from Flexion’s merchandise and which it anticipates shall be accretive to full-year 2022 earnings and even larger thereafter.
The businesses acknowledged that the acquisition provide has already been unanimously accepted by every firm’s respective Boards of Administrators and is anticipated to shut in This autumn/21. The agency’s famous that the transaction stays topic to approval by Flexion’s shareholders, strange closing circumstances and regulatory approval.
Along with the $8.50 per share money provide, Flexion shareholder will obtain one non-tradeable CVR as listed above for every frequent share owned that’s all predetermined milestones are achieved could be value as much as one other extra $8.00 per share in money.
The report listed that the milestones which have to be met on or earlier than December 31, 2030 and related funds if realized, are as follows: “$1.00 per share if complete calendar 12 months ZILRETTA internet gross sales obtain $250 million; $2.00 per share if complete calendar 12 months ZILRETTA internet gross sales obtain $375 million; $3.00 per share if complete calendar 12 months ZILRETTA internet gross sales obtain $500 million; $1.00 per share upon U.S. FDA approval of FX201 and $1.00 per share upon U.S. FDA approval of FX301.”
Pacira BioSciences is headquartered in Tampa, Fla. and concentrates its efforts on growing and offering non-opioid ache administration and regenerative well being options to sufferers throughout the neural ache pathway. The agency’s EXPAREL® (bupivacaine liposome injectable suspension), a long-acting native analgesic, was first launched within the U.S. in 2012. The corporate defined that “EXPAREL® makes use of DepoFoam®, a novel and proprietary product supply know-how that encapsulates medication with out altering their molecular construction and releases them over a desired time frame.”
The corporate listed that it additionally owns the iovera° system, which it described as “a handheld cryoanalgesia system used to ship exact, managed doses of chilly temperature solely to focused nerves.”
Flexion Therapeutics is a commercial-stage biopharma agency primarily based in Burlington, Mass. that’s concerned in growing and commercializing novel, native therapies for musculoskeletal circumstances and particularly, osteoarthritis (OA), which is essentially the most prevalent type of arthritis. The corporate suggested that “its accepted product, ZILRETTA® is the primary and solely extended-release, intra-articular, or IA (which means within the joint), injection indicated for the administration of OA knee ache.”
Flexion Therapeutics began off the day with a market cap of round $290.7 million with roughly 50.3 million shares excellent and a brief curiosity of about 11.3%. FLXN shares opened 70% larger right now at $9.86 (+$4.08, +70.59%) over Friday’s $5.78 closing worth. The inventory has traded right now between $9.03 and $9.89 per share and is presently buying and selling at $9.23 (+$3.45, +59.69%).
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