On March 30th, Teva Pharmaceuticals agreed to acquire Auspex Pharmaceuticals for $3.5 billion, or around $100.00 per share. A few points to consider as it relates to Concert Pharmaceuticals, which is one of our holdings.
1. This acquisition instills confidence in the science of deuterium-based chemistry. Both Auspex and Concert are applying deuterium to existing drugs to potentially enhance their efficacy, half-life or safety profile.
2. In 2011 Concert assigned patent rights for the deuterated drug Pirfenidone to Auspex. Under the agreement, if a change in control of ASPX, Concert would be due 1.44% of the purchase price, in this case, approximately $50 million.
3. After completing a recent secondary offering for up to $46 million and considering the newly acquired $42 million, the company should hold approximately $154 million, after retiring $7 million in debt. Thank you for reading.
1. This acquisition instills confidence in the science of deuterium-based chemistry. Both Auspex and Concert are applying deuterium to existing drugs to potentially enhance their efficacy, half-life or safety profile.
2. In 2011 Concert assigned patent rights for the deuterated drug Pirfenidone to Auspex. Under the agreement, if a change in control of ASPX, Concert would be due 1.44% of the purchase price, in this case, approximately $50 million.
3. After completing a recent secondary offering for up to $46 million and considering the newly acquired $42 million, the company should hold approximately $154 million, after retiring $7 million in debt. Thank you for reading.
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