BioSpecifics rockets on news of a takeover deal

USA-based BioSpecifics Technologies (Nasdaq: BSTC) announced today that it has entered into a definitive merger agreement under which it will be acquired by Ireland-headquartered Endo International (Nasdaq: ENDP), sending the firm’s shares soaring 44.4% to $88.20 in pre-market trading, while those of Endo dipped 1.8% to $4.89.

The estimated equity value is around $658.0 million ($540.0 million in enterprise value net of cash on hand), or $88.50 per share in cash. The transaction was unanimously approved by both BioSpecifics' and Endo's boards of directors and is anticipated to close during the fourth quarter of 2020.

Endo has had a strategic relationship with BioSpecifics since 2004. Under the terms of the relationship, BioSpecifics receives a royalty stream from Endo related to Endo's collagenase-based therapies, which currently include Xiaflex (collagenase clostridium histolyticum), marketed by Endo for the treatment of Dupuytren's contracture and Peyronie's disease, and Qwo (collagenase clostridium histolyticum-aaes), the first Food and Drug Administration-approved injectable treatment for cellulite, which is expected to be launched by Endo Aesthetics in Spring 2021.