Akcea Therapeutics, Inc. (AKCA) on Monday announced signing an acquisition agreement with Ionis Pharmaceuticals, Inc. (IONS). The news caused its share price to surge on the day. It closed the trading $6.90 or 60.63% up from the previous closing price.
Under the definitive agreement, Ionis will purchase all outstanding common shares of Akcea. The shares so acquired will not include those already in possession of Ionis. This will make Ionis purchasing about 24% of Akcea’s shares while paying $18.15 for each share. The acquisition deal will be an all cash transaction of worth around $500 million. Boards of Directors of both companies have given go ahead to the transaction. Akcea also formed an Affiliate Transactions Committee to review the transaction as independent body. The Committee also gave a green signal for the acquisition deal. For smooth execution of the transaction, BOD of Akcea recommended its shareholders to tender their shares into the tender office.
The acquisition will be another milestone for Ionis towards strategic development, its Chief Executive Officer Brett Monia said. This will make Ionis an organization that would be strong and efficient enough to be beneficial for all stakeholders. Becoming one company will make our targets and business priorities common. Working as one team will enable us to perform strategically significant and strengthen our future success. This will also drive our next phase of growth faster and aligned us to operate efficiently. The transaction will eventually bring more value into the Ionis. At the end of the day, Ionis will have more commercialized products by Akcea. This will help Ionis to make its financial position stronger and continue investing to grow further, Monia added.
Damien McDevitt, Chief Executive Officer of Akcea appreciated the team’s efforts in development and delivery of transformational medicines to patients. Skills, expertise and experience of its team are more valuable for Akcea. And this acquisition deal endorses what we have achieved as a team, he added.
The transaction not involved any financing clause and will be executed through Ionis’ existing cash resources. Both companies are expecting concluding the transaction by next quarter, subject to completion of other documentary processes.