NuPathe rockets on news of takeover by Endo Health

16 December 2013

In a third take-over deal announced this year, USA-based specialty health care company Endo Health Solutions (Nasdaq: ENDP) says it has entered into a definitive agreement to acquire NuPathe (Nasdaq: PATH) for $2.85 per share in cash, or around $105 million. The news saw NuPathe’s shares leap nearly 46% to $3.35 in morning trading.

In addition to the upfront cash payment, NuPathe shareholders will receive rights to receive additional cash payments of up to $3.15 per share if specified net sales of NuPathe's migraine treatment Zecuity (sumatriptan iontophoretic transdermal system) are achieved over time. The contingent cash consideration payment is summarized as follows:

$2.15 per share if net sales of Zecuity exceed $100 million during any four-quarter period prior to the ninth anniversary of the first commercial sale of the drug; and
an additional $1.00 per share if net sales of Zecuity exceed $300 million during any four-quarter period prior to the ninth anniversary of the first commercial sale of the drug.

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