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On the 25th of March, 2024, a significant merger agreement was announced between two major players in the pharmaceutical industry, Landos Biopharma, Inc.(LABP) and AbbVie (ABBV). According to the agreement, AbbVie will acquire Landos Biopharma in an intricately structured deal valued at -$34.16 million.
Shareholders of Landos Biopharma will be receiving $20.42 per share in cash plus one non-tradable contingent value right (CVR) per share with a value of up to $11.14 per share, subject to the achievement of a clinical development milestone. This arrangement offers a premium of 160.79%, based on the closing price of Landos Biopharma at 21.36 on March 25, 2024. The premium above the 30-day average trading price offered by AbbVie stands at an impressive 208.46%.
As per the terms of the merger agreement, a termination fee of 7 million will be levied on either party if they decide to abort the contract. The deadline for the completion of this merger is set for September 24, 2024.
In this merger, Jefferies acted as financial advisor and Cooley LLP offered legal advice to Landos Biopharma. On the other hand Paul, Weiss, Rifkind, Wharton & Garrison LLP served as their legal counsel for AbbVie.
More details regarding this acquisition can be found on the following link:
Deal Metrics for the acquisition of Landos Biopharma, Inc. (LABP) by AbbVie Inc. (ABBV)
Disclaimer: This article is purely informational. We strongly recommend conducting your own research and due diligence before making any investment decisions based on the content of this article. We do not guarantee the accuracy or completeness of the information provided in this article.