UCB to expand epilepsy portfolio with $1.9 billion buy

Shares of USA-based biotech Zogenix (Nasdaq: ZGNX) shot up more than 70% to $26.24 in US trading this morning, after Belgian drug major UCB (Euronext: UCB) revealed it has reached a definitive agreement to acquire the rare diseases drug developer.

Under the terms of the agreement, UCB will commence a tender offer to purchase all outstanding shares of Zogenix for $26.00 per share in cash at closing, plus a contingent value right (CVR) for a potential cash payment of $2.00 upon European Union approval by December 31, 2023, of Fintepla (fenfluramine) as an orphan medicine for treatment of Lennox-Gastaut syndrome (LGS). The upfront consideration represents a 72% premium to Zogenix shares based on the 30-day volume weighted average closing stock price of Zogenix prior to signing. The total transaction is valued at up to around $1.9 billion/1.7 billion euros.

The board of directors of both companies have unanimously approved the transaction, the closing of which remains subject to the tender of shares representing at least a majority of the total number of Zogenix’ outstanding shares, receipt of required antitrust clearances, and other customary conditions. The transaction is expected to close by the end of the second quarter of 2022.