The acquisition is expected to expedite the profitability and diversify revenue streams of the ROLVEDON (eflapegrastim-xnst) injection
Assertio has signed an agreement to buy Spectrum Pharmaceuticals. (Credit: Diana Polekhina on Unsplash)
Speciality pharmaceutical company Assertio Holdings has signed a definitive agreement to buy all outstanding shares of Spectrum Pharmaceuticals in an all-stock and contingent value rights (CVR) transaction.
The acquisition is expected to expedite the profitability and diversify revenue streams of the ROLVEDON (eflapegrastim-xnst) injection.
ROLVEDON is a long-acting growth factor (G-CSF) designed to lower the incidence of infection in adult patients with non-myeloid malignancies receiving myelosuppressive anti-cancer drugs.
According to the terms of the transaction, Spectrum stockholders will get a fixed exchange ratio of 0.1783 shares of Assertio common stock for each share of Spectrum common stock they have. This is equal to an upfront value of $1.14 per Spectrum share (around $248m).
Spectrum stockholders will also receive one CVR per Spectrum share entitling them to receive up to $0.20 per share in total which is equal to around $43m. It is payable in cash or stock at Assertio’s election, for $1.34 (around $291m).
Upon closing of the deal, Spectrum stockholders will own approximately 35% of the combined company, and Assertio stockholders will own approximately 65%, on a fully diluted basis.
Assertio President and CEO Dan Peisert said: “The addition of Spectrum’s commercial capabilities and ROLVEDON, a novel long-acting G-CSF product recently launched into a blockbuster market in October 2022, exemplifies Assertio’s attractiveness as an acquirer of new, accretive assets across diverse therapeutic categories, and ability to continue their growth and achieve profitable contributions faster and more efficiently than could be achieved on a standalone basis.”
The transaction is expected to bolster the commercial infrastructure and resources of both firms, offering better market access and resources than either company as a standalone firm.
The deal will enable the combined entity to own a more scalable and competitive infrastructure.
It will help in the development and acquisition of existing and new late-development-stage products ideal for Assertio’s omnichannel sales strategy.
The combined platform will now include Assertio’s key assets like Indocin, Sympazan and Otrexup and Spectrum’s ROLVEDON.
Already approved by the boards of directors of both firms, the transaction is expected to close in the third quarter of this year, subject to approval by the company’s stockholders and the satisfaction of customary closing conditions.
Spectrum Pharmaceuticals president and CEO Tom Riga said: “Our combined assets and commercial infrastructure will position us to accelerate ROLVEDON’s launch for the benefit of patients, maximize its potential and drive further growth.”