Assertio Scoops Up Spectrum Pharma In $248M Stock Deal

Author: Vandana Singh | April 25, 2023 11:03am

• Assertio Holdings Inc (NASDAQ:ASRT) will acquire Spectrum Pharmaceuticals Inc (NASDAQ:SPPI) in an all-stock and contingent value rights (CVR) transaction.
• Under the terms of the agreement, each Spectrum share will be exchanged for a fixed exchange ratio of 0.1783 shares of Assertio common, implying an upfront value of $1.14 per Spectrum share.
• Additionally, Spectrum stockholders will receive one CVR per Spectrum share, entitling them to receive up to an additional $0.20 per share (approximately $43 million), payable in cash or stock at Assertio's election, for $1.34 (approximately $291 million), by the end of 2024 and 2025.
• Also Read: After FDA Rejection, Spectrum Shelves Development On Poziotinib.
• Following the close of the transaction, Assertio stockholders will own approximately 65% of the combined company, and Spectrum stockholders will own approximately 35% on a fully diluted basis.
• "The addition of Spectrum's commercial capabilities and Rolvedon, a novel long-acting G-CSF product recently launched into a blockbuster market in October 2022, exemplifies Assertio's attractiveness as an acquirer of new, accretive assets across diverse therapeutic categories," Assertio's president and CEO Dan Peisert said.
• The transaction is expected to be accretive to Assertio's adjusted EPS and operating cash flow in 2024.
• Assertio intends to add operating costs of approximately $60 million annually.
• Price Action: ASRT shares are down 19.5% at $5.15 on the last check Tuesday.

Posted In: ASRT SPPI