Merger Arbitrage Mondays – Opiant Pharmaceuticals To Be Acquired By Indivior

Merger activity decreased last week with two new deals announced, four deals completed and one deal terminated. Opiant Pharmaceuticals (OPNT) Opiant Pharmaceuticals, a specialty pharmaceutical company that develops medicines for the treatment of addictions and drug overdose entered into a definitive merger agreement to be acquired by Indivior. Indivior is a pharmaceutical company based in Chesterfield that is in the business of opioid addiction treatment. The NARCAN nasal spray used for treating patients who have overdosed on opioids is developed by Opiant Pharmaceuticals. Under the merger agreement, Indivior will acquire Opiant for an upfront consideration of $20.00 per share, in cash plus up to $8.00 per share in contingent value rights (“CVRs”) that may become payable in the event that certain net revenue milestones are achieved by it inhaled opioid overdose candidate (OPNT003) during a seven-year period after its approval and launch. The transaction represents a premium of over 110% to Opiant’s closing price on November 11, 2022. The specific conditions under which the CVR would pay out include, Indivior would pay $2.00 per CVR if OPNT003 achieves the following net revenue thresholds during any period of four consecutive quarters prior to the seventh anniversary of the U.S. commercial launch: (i) $225 million, (ii) $300 million,...

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