Endo Health to acquire Nupathe for $105 million
Dec 16 (Reuters) - Specialty pharmaceutical company Endo Health Solutions Inc said it would buy NuPathe Inc for about $105 million to gain access to NuPathe's migraine treatment, Zecuity.
NuPathe shareholders will get $2.85 per share, a premium of 24 percent to the stock's Friday close. They will also be entitled to up to $3.15 per share if specified sales milestones for Zecuity are acheived.
NuPathe shares jumped nearly 61 percent to $3.70 in trading before the bell.
Zecuity, approved by the U.S. Food and Drug Administration in January, is the only FDA-approved prescription migraine patch. It delivers a commonly used migraine drug, sumatriptan, to treat both headaches and migraine-related nausea.
Endo said it plans to launch Zecuity in the first half of 2014. The deal is expected to add to Endo's earnings within the first 12 months of closing.
The transaction is expected to close in early 2014.
Malvern, Pennsylvania-based Endo's shares closed at $63.86 on the Nasdaq on Friday. Nupathe shares closed at $2.30. (Reporting by Natalie Grover in Bangalore; Editing by Joyjeet Das)
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