Dublin-based pharma company Amryt, which is focused on finding treatments for rare conditions, has announced a transformational $330m (€275m) takeover of US peer Chiasma, in an all-stock combination.
The group will continue to be headquartered in Dublin and listed in New York and London. Amryt shareholders will own 60pc of the merged businesses after the deal, which is expected to close in the second half of this year.
The combined company said it will be a global leader in rare and orphan diseases, so-called because they affect a small percentage of the population.
The enlarged business will have three on-market commercial products, a global footprint and a “significant development pipeline of therapies” with financial flexibility to execute its growth plans, the companies said.
Amryt CEO Dr Joe Wiley, said the transaction “brings together two teams that have a strong track record of execution and passion for developing therapies that can help improve the lives of patients in need”.
“Our lead development candidate, Oleogel-S10, is currently progressing through the regulatory process in the US and EU and, if approved, will bring our portfolio of commercial products to four,” Dr Wiley added.
The transaction has been approved and recommended by the boards of both Amryt and Chiasma.
Under the terms of the transaction, each share of Chiasma common stock issued and outstanding prior to the completion of the transaction will be exchanged for 0.396 Amryt American Depositary Shares (“ADSs”), each representing five Amryt ordinary shares.
As of the close of trading on May 4, Amryt’s ordinary shares on AIM were at £2.00 (€2.32) and Amryt’s ADS’s on Nasdaq were $12.95.
After the deal Amryt will continue to be led by Dr Joe Wiley, with Raj Kannan, CEO of Chiasma, expected to join the new board of Amryt along with one additional director.
The combined business will employ 280 people.
Tara Raveendran, analyst at Shore Capital Stockbrokers, which is a broker for Amryt, said the deal is “totally consistent with strategic aims of the company”.
“The asset really fits neatly with the company’s strategy,” Ms Raveendran said, adding that it is “quite a compelling opportunity for Amryt.”
US investment bank Moelis was exclusive financial advisor to Amryt, with Gibson, Dunn & Crutcher as legal advisor to the company on the deal. Shore Capital is acting as nominated advisor (NOMAD) and joint broker to Amryt.
Torreya Capital is Chiasma’s financial advisor and Goodwin Procter is serving as legal advisor.
Separately Amryt reported revenue of $48.4m in the three months to March 31, an increase of 8.7pc on the same period last year.
The group’s operating losses narrowed to $3.4m in quarter one, down from a loss of $17m in the corresponding period last year.
Amryt was founded by Joe Wiley, Cathal Friel and Rory Nealon.