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Assertio Holdings Inc (NASDAQ: ASRT) will acquire Spectrum Pharmaceuticals Inc (NASDAQ: SPPI) in an all-stock and contingent value rights (CVR) transaction.
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Under the terms of the agreement, each Spectrum share will be exchanged for a fixed exchange ratio of 0.1783 shares of Assertio common, implying an upfront value of $1.14 per Spectrum share.
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Additionally, Spectrum stockholders will receive one CVR per Spectrum share, entitling them to receive up to an additional $0.20 per share (approximately $43 million), payable in cash or stock at Assertio’s election, for $1.34 (approximately $291 million), by the end of 2024 and 2025.
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Also Read: After FDA Rejection, Spectrum Shelves Development On Poziotinib.
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Following the close of the transaction, Assertio stockholders will own approximately 65% of the combined company, and Spectrum stockholders will own approximately 35% on a fully diluted basis.
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“The addition of Spectrum’s commercial capabilities and Rolvedon, a novel long-acting G-CSF product recently launched into a blockbuster market in October 2022, exemplifies Assertio’s attractiveness as an acquirer of new, accretive assets across diverse therapeutic categories,” Assertio’s president and CEO Dan Peisert said.
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The transaction is expected to be accretive to Assertio’s adjusted EPS and operating cash flow in 2024.
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Assertio intends to add operating costs of approximately $60 million annually.
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Price Action: ASRT shares are down 19.5% at $5.15 on the last check Tuesday.
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This article Assertio Scoops Up Spectrum Pharma In $248M Stock Deal originally appeared on Benzinga.com
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