BioCryst and Idera shares fall on news of their merger
US biotech firms BioCryst Pharmaceuticals (Nasdaq: BCRX) and Idera Pharmaceuticals (Nasdaq: IDRA) saw their shares plunge by as much as 12% and 28%, respectively yesterday after they announced that they have signed a definitive merger agreement to form a new enterprise focused on the development and commercialization of medicines to serve more patients suffering from rare diseases.
The move lower would appear to indicate that Wall Street views this as a merger out of weakness and necessity rather than one of strategic initiative and strength. BioCryst ended the day down 4.83% at $5.22 and Idera fell 14.9% to $2.17.
The combined company will be renamed upon closing and will be led by Vincent Milano, chief executive of Idera, who will also serve as a member of the board. BioCryst chairman, Robert Ingram, will be chairman of the board of the combined company and BioCryst CEO Jon Stonehouse will serve as a member of the board of directors. The transaction is expected to be completed by the end of the second quarter of 2018.
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