Xeris to acquire Strongbridge Biopharma in stock and CVR transaction

US specialty drug company Xeris Pharmaceuticals (Nasdaq: XERS) has entered into a definitive agreement to acquire Strongbridge Biopharma (Nasdaq: SBBP) for stock and contingent value rights (CVRs), aiming to create an innovative leader in endocrinology and rare diseases.

The deal values Strongbridge at around $267 million, based on the closing price of Xeris common stock of $3.47 on May 21 and Strongbridge’s fully diluted share capital. Strongbridge shares jumped more than 14% to $2.75 in early trading today, while Xeris dipped 3.55 to $3.35 on the announcement.

The transaction, which has been unanimously approved by the boards of directors of both companies, with the exception of Dr Jeffrey Sherman, a director in common to both companies, who abstained from the voting, is expected to close early in the fourth quarter of 2021, subject to the satisfaction of closing conditions. Upon close of the transaction, the businesses of Xeris and Strongbridge will be combined under a new entity to be called Xeris Biopharma Holdings.