Stock-for-stock agreement will create a firm with a SEK 2.3 billion market capitalization.
Orexo plans to acquire Biolipox in a stock-for-stock transaction valued at SEK 856 million, or approximately $133.75 million. The combined entity will retain the Orexo name and will have an estimated market capitalization of approximately SEK 2.3 billion, according to the firms.
“The combination of Orexo and Biolipox will create a larger and more robust pharmaceutical company with a broad and attractive product pipeline,” remarks Håkan Åström, chairman of the board of Orexo. “Orexo’s business model, combined with the Biolipox innovative research pipeline is an exciting combination to create value.”
The acquisition price is set at SEK 100 per share based on the Biolipox’ average value during the last 45 days of trading. Payment will be made through an issue of a maximum of 8,560,000 Orexo shares. Biolipox’ shareholders will own 38% of the new company.
Biolipox is a research-based pharmaceutical company that develops new therapies for inflammatory diseases including pain management and respiratory diseases such as asthma and chronic obstructive pulmonary disease.
