BridgeBio Pharma (BBIO) – Get Report shares are falling premarket after the company said it would buy the 36.3% of Eidos Therapeutics (EIDX) – Get Report that it doesn’t already own for cash and stock valued at $73.26 a share.
Eidos shares at last check jumped 32% to $68.29. The plan gives holders a 55% premium to the volume-weighted-average price of the stock over the 30 trading days through Oct. 2. The premium is 41% over the San Francisco company’s Friday closing price of Eidos at $51.92.
BridgeBio shares at last check fell 6.6% to $36.99.
Both companies’ boards have approved the transaction.
Holders of two-thirds of Eidos shares not held by BridgeBio must approve the deal. A majority of shares held by BridgeBio holders must also approve the purchase. The companies do not need antitrust clearance to close the deal, BridgeBio said.
BridgeBio said it would fund the deal with cash on hand.
Eidos is developing acoramidis, a treatment for patients with ATTR cardiomyopathy and polyneuropathy.
“This transaction removes the operational complexity of the current ownership structure and allows us to fully unlock the potential of this investigational medicine for patients and investors,” said Neil Kumar, who is founder and chief executive of BridgeBio and CEO of Eidos.
The company recently completed screening for its Phase 3 trial of acoramidis, in which more than 600 participants are expected to enroll.
BridgeBio says the acquisition will help lay the groundwork for a global launch of acoramidis.
BridgeBio, Palo Alto, Calif., focuses on inherited diseases and targeted oncology, Kumar said. Acoramidis will become BridgeBio’s keystone in its cardiorenal portfolio.
Top-line results from Part A of the current trial are expected in late 2021 or early 2022, with Part B results expected in 2023.
If Part A is successful, BridgeBio intends to file for regulatory clearance of acoramidis in 2022.