End of the line for Intercept, as it accepts takeover bid from Alfasigma

Italy-based Alfasigma has reached an agreement to acquire US biopharma Intercept Pharmaceuticals (Nasdaq: ICPT).

The deal comes after the US Food and Drug Administration’s repeat rejection of Intercept’s non-alcoholic steatohepatitis (NASH) candidate obeticholic acid (OCA), and the news saw Intercept’s shares leap almost 80% to $18.71 by close of trading yesterday.

Under the terms of the merger agreement, Alfasigma has agreed to commence a cash tender offer to acquire all issued and outstanding shares of Intercept common stock for $19.00 per share in cash, or around $800 million. The purchase price represents a premium of 82% to Intercept’s closing stock price on September 25, 2023.  It is anticipated the transaction will close by the end of 2023.