BioCryst and Idera shares fall on news of their merger

23 January 2018

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.

This article is accessible to registered users, to continue reading please register for free. A free trial will give you access to exclusive features, interviews, round-ups and commentary from the sharpest minds in the pharmaceutical and biotechnology space for a week. If you are already a registered user please login. If your trial has come to an end, you can subscribe here.

Try before you buy

Free

7 day trial access

Take a Free Trial

All the news that moves the needle in pharma and biotech
Exclusive features, podcasts, interviews, data analyses and commentary from our global network of life sciences reporters.
Receive The Pharma Letter daily news bulletin, free forever.

Become a subscriber

£820

Or £77 per month

Subscribe Now

Unfettered access to industry-leading news, commentary and analysis in pharma and biotech.
Updates from clinical trials, conferences, M&A, licensing, financing, regulation, patents & legal, executive appointments, commercial strategy and financial results.
Daily roundup of key events in pharma and biotech.
Monthly in-depth briefings on Boardroom appointments and M&A news.
Choose from a cost-effective annual package or a flexible monthly subscription

The Pharma Letter is an extremely useful and valuable Life Sciences service that brings together a daily update on performance people and products. It’s part of the key information for keeping me informed

Chairman, Sanofi Aventis UK