The price of Amryt Pharma plc (NASDAQ:AMYT) shares were down -8.88% to $11.7 at last check in premarket trading. AMRYT stock closed at $12.84 on Tuesday, down 5.24% or $0.71. Over the last session, the AMYT stock fluctuated between $12.84 and $13.365. Even after an acquisition announcement, AMYT stock is on the decline.
The acquisition deal is for what?
The Amryt Sciences Corporation is a global biopharmaceutical company focused on the acquisition, development, and commercialization of new therapeutics for the treatment of rare diseases.
- It was announced today that AMYT has entered into a definitive agreement to acquire Chiasma, Inc. (Nasdaq:CHMA) to become part of it business in an all stock deal.
- Combining the two companies will create a global leader in orphan and rare diseases with three commercial products with a global footprint.
- The merger will also result in a significant pipeline of new therapies, and financial flexibility to execute its growth plans.
- Boards of AMYT and CHMA have approved and recommended the transaction.
- CHMA’s outstanding common shares will be exchanged for 0.396 AMYT American Depositary Shares (ADSs) under the terms of the transaction.
- Each AMYT ADS represents five ordinary shares of Amryt.
- The closing price of AMYT’s ordinary shares on AIM on Tuesday May 4, 2021 was £2.00 ($2.78) while its Nasdaq ADS’s were $12.95 (£9.31).
How AMYT will leverage the deal?
With the right infrastructure, expertise and financial flexibility in place, Amryt (AMYT) is well prepared to take full advantage of the global potential of MYCAPSSA, the first and only oral somatostatin analog (“SSA”) approved for appropriate patients with acromegaly. AMYT anticipates accelerating its growing revenue and delivering estimated cost synergies of $50 million per year after the transaction.