Shares of Consort Medical PLC (LON: CSRT) have rocketed on Monday after it was reported that a takeover deal had been finalized.
Shares of Consort rocketed 43.25% to 1,040p. 18/11/19 11:29GMT.
Sweden based Recipharm AB (STO: RECI-B) have acquired Consort for a £505 million deal which has spiked shareholder appetite.
The full terms of the deal are yet to be disclosed, however a unit of Recipharm will pay 1,010 pence in cash for each share of Consort.
Christopher Brinsmead, chair of Consort, said: “We believe that Recipharm’s businesses are highly complementary to our own and the board intends to unanimously recommend the offer from Recipharm which represents a 39% premium to our share price.”
The enlarged Recipharm group is set to become a top five global CDMO, and this will allow Recipharm to offer integrated device development.
The offer is set to be fully financed through bank facilities, to be partly repaid by proceeds from a proposed share issue.
Additionally, Consort reported annual pro forma revenue of £292 million (SEK 3,633 million) and pro forma EBITDA of £47 million (SEK 587 million).
This follows the same stream as RA Pharma (NASDAQ: RARX) and UCB (EBR: UCB) merging a few weeks back.
Thomas Eldered, Chief Executive Officer of Recipharm, said: “I am excited at the prospect of combining Recipharm with Consort, which is extremely complementary. In our view, Bespak is already acknowledged as a leading drug device developer and manufacturer and is a perfect fit for Recipharm’s broader pharmaceutical capabilities. The enlarged group will be able to provide finished dose forms in Bespak’s key technologies and provide customers with a far more integrated approach. The Aesica business will further expand our capabilities and capacities in both API and finished dose manufacturing whilst providing access to a new customer base”.
Jonathan Glenn, Chief Executive Officer, of Consort added: “Consort’s strategy has been to focus on expanding its businesses into new markets and geographic territories, and on developing our combined drug/device offering. Recipharm’s capabilities and footprint in drug manufacturing will enhance both our Bespak and Aesica businesses. We believe that customers of both businesses will value the offering and enhanced scale of the combined business”.
At at time where the pharmaceuticals market is becoming increasingly competitive and more saturated, both parties involved in this transaction should be optimistic about future outlook.
In the pharmaceuticals industry, competitors have also reported strong gains in their respective quarterly updates.
Pfizer (NYSE: PFE) have smashed analyst and market expectations, whilst British rival GSK (LON: GSK) raised their annual profit forecast following a strong quarterly update.
