Merger activity remained steady last week with three new deals announced and two deals closing but there was a lot of volatility especially earlier in the week that caused spreads to expand significantly at some point.
Two of the three new deals announced last week were in the pharmaceutical sector. Headquartered in Vancouver, Canada, Correvio Pharma is a specialty pharmaceutical company focused on commercializing hospital drugs. The company agreed to be acquired by ADVANZ PHARMA, a pharmaceutical company with a diverse portfolio of 200 niche medications. ADVANZ PHARMA was formerly known as Concordia International.
Founded in 2006 and headquartered in Watertown, Massachusetts, Tetraphase Pharmaceuticals (TTPH) is a biopharmaceutical company that develops various antibiotics for the treatment of serious and life-threatening multidrug-resistant infections. The company agreed to be acquired by AcelRx Pharmaceuticals (ACRX) in an all stock deal. The deal also includes one contingent value right (CVR), which would entitle the holders to receive aggregate payments of up to $12.5 million for the achievement of future XERAVA™ net sales milestones starting in 2021. We are classifying this deal as a “special conditions” type of deal in our Merger Arbitrage Tool (MAT) on account of the CVR.
You can find all the active deals listed below in our Merger Arbitrage Tool (MAT) that automatically updates itself during market hours.
There were two new deals announced in the Deals in the Works section last week.