UCB Acquires RA Pharmaceuticals For $48 Per Share In Cash Or $2.1B

UCB and Ra Pharmaceuticals (RARX) announced their entry into a merger agreement pursuant for which UCB will acquire Ra Pharma. Under the terms of the agreement, Ra Pharma shareholders will receive $48 in cash for each Ra Pharma share at closing.

The boards of both companies have unanimously approved the transaction, which remains subject to approval by Ra Pharma shareholders and to obtaining antitrust clearance. Upon closing, Ra Pharma shareholders will receive $48 for each Ra Pharma share, which represents a transaction value of approximately $2.1B, net of Ra Pharma cash. The cash consideration represents an approximately 93% premium to Ra Pharma shareholders based on the 30-day volume-weighted average closing stock price of Ra Pharma prior to signing. UCB and Ra Pharma expect to complete the transaction by the end of Q1 2020.

The acquisition will not impact UCB's 2019 financial guidance. Jean-Christophe Tellier, CEO UCB said: "Ra Pharma is an excellent strategic fit addressing multiple areas of UCB's patient value growth strategy. Upon closing, the acquisition will add to our strong internal growth opportunities - six potential product launches in the next five years, strengthening our neurology and immunology franchises with late and early-state pipeline projects. In addition, the combination will provide us with the opportunity to become a leader in treating people living with myasthenia gravis, an auto-antibody mediated neurological orphan disease with a high unmet medical need, as well as adding a highly productive technology platform to our innovation engine."

Disclosure: None.

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