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BioSpecifics Technologies Agrees to $658 Million Buyout Offer from Endo Pharmaceuticals

Source: Streetwise Reports

 

October 20, 2020 (Investorideas.com Newswire) Biospecifics Technologies shares traded 45% higher after the company reported that it agreed to be acquired by Endo Pharmaceuticals for $88.50 per share in an all cash transaction.


Prior to the U.S. markets opening today, biopharmaceutical company BioSpecifics Technologies Corp. (BSTC:NASDAQ), which focuses on development of collagenase-based therapies, announced that it has "entered into a definitive merger agreement under which Endo International Plc (ENDP:NASDAQ) will acquire BioSpecifics for an estimated equity value of approximately $658.0 million ($540.0 million in enterprise value net of cash on hand), or $88.50 per share in cash." The company stated that the transaction is expected to close during Q4/20 and has already been unanimously approved by each of the firms' Board of Directors.

BioSpecifics CEO Joseph Truitt commented, "BioSpecifics Technologies Corp. pioneered the development of collagenase-based therapies, which has resulted in a robust injectable collagenase (CCH) portfolio, consisting of XIAFLEX® to treat the vast number of diseases and medical conditions caused by the excess accumulation of collagen and Qwo™ for the treatment of cellulite."

Jennifer Chao, chair of the Board of Directors of BioSpecifics Technologies, remarked, "Today's announcement marks a great outcome for all BioSpecifics stakeholders, and is the result of the company's successful value creation strategy executed by the management team and the Board of Directors. The company has worked tremendously hard to deliver this excellent result and is grateful for the abiding support of its employees, partners and shareholders."

The company noted the merger agreement terms stipulate that through a wholly owned subsidiary, Endo International will commence an all-cash tender offer for 100% of all outstanding BioSpecifics common stock shares at a price of $88.50 per share. The firm noted that the deal still remains subject to acceptance by a majority BioSpecifics' shareholders (shares) and customary closing conditions, waiting periods and regulatory approval.

BioSpecifics Technologies is a commercial-stage biopharmaceutical company that develops collagenase-based therapies. According to the company, collagenases are naturally occurring enzymes that are responsible for breaking down collagen. The firm stated that it "discovered and developed a proprietary form of injectable collagenase (CCH), which is currently marketed by its partner, Endo, as XIAFLEX® in North America for the treatment of Dupuytren's contracture and Peyronie's disease."

Endo International is a specialty pharmaceutical company based in Dublin, Ireland. The firm has market cap of about US$1.1 billion and its U.S. operations are headquartered in Malvern, Pa.

Biospecifics Technologies began the day with a market capitalization of around $448.2 million with approximately 7.345 million shares outstanding and a short interest of about 3.2%. BSTC shares opened 44% higher today at $88.15 (+$27.13, +44.46%) over Friday's $61.02 closing price and reached a new 52-week high price this morning of $88.45. The stock has traded today between $88.05 and $88.45 per share and is currently trading at $88.42 (+$27.40, +44.90%).

Disclosure:

1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.

2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.

3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.

4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

6) This article does not constitute medical advice. Officers, employees and contributors to Streetwise Reports are not licensed medical professionals. Readers should always contact their healthcare professionals for medical advice.

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