Opiant Pharma rockets on news of acquisition by Indivior

California, USA-based Opiant Pharmaceuticals (Nasdaq: OPNT) saw its shares skyrocket 111.6% to $20.10 by close of trading yesterday, as it announced a definitive agreement to be acquired by UK drugmaker Indivior (LON: INDV).

Under the terms of the agreement, Indivior, a leader in substance use disorder (SUD) treatment, will acquire all of the outstanding shares of Opiant for an upfront of $20.00 per share in cash at closing, plus contingent value rights (CVRs) representing, if achieved, potential additional payments over a period of seven years of up to $8.00 per share. Achievement of the CVR payments, if any, are based on attaining certain revenue thresholds for OPNT003, nasal nalmefene, Opiant’s investigational treatment for opioid overdose. Indivior expects to fund the aggregate upfront consideration of around $145 million with existing cash.

Inclusive of each of the CVR payments, the total potential transaction value represents a premium of up to 195% and 178%, respectively. The transaction has been unanimously approved by the boards of directors of each company, and is expected to close in first-quarter 2023.