Jaguar shareholders will receive three Napo shares for every Jaguar share they own.
Jaguar’s shares shot up 43% to US$0.968 on the news, valuing the company at US$13.40mln.
The merger of the two companies will provide Jaguar with an important prescription revenue stream from sales of Mytesi, a prescription product formerly known as Fulyzaq, Jaguar’s statement said.
Mytesi is a drug approved by the US Food and Drug Administration (FDA) for the symptomatic relief of non-infectious diarrhoea in adults with HIV/AIDS on anti-retroviral therapy.
Napo and Jaguar forecast that Mytesi will generate around US$7.0mln in net sales in 2017, with the greatest impact on prescription growth coinciding with the deployment of the sales force and a sampling program.
“The board members of both Jaguar and Napo believe this is an opportune time to combine the two companies and that this binding agreement is in the best interests of both Jaguar and Napo as well as their respective equity holders,” said Lisa Conte, Jaguar’s president and also its chief executive officer (CEO).
“Upon the consummation of the merger, Jaguar and Napo together are poised to realize a number of synergistic, value-adding benefits—most importantly a prescription product revenue stream—and an expanded pipeline of important follow-on indications for Mytesi upon which to forge global partnerships,” she added.
“We are confident that this merger will enable both companies, through a joint management team, to access efficiencies and enhance potential value creation,” said Conte, who has been named as the interim CEO of the merged entity.
Story by ProactiveInvestors