AcelRx Pharmaceuticals has executed a definitive merger agreement to acquire Tetraphase Pharmaceuticals in a stock-based transaction.

Under the agreement, Tetraphase stockholders will receive 0.6303 of a share of AcelRx common stock for each share of Tetraphase common stock. The deal is worth around $14.4m.

Furthermore, the terms of the agreement cover one contingent value right (CVR), which will provide aggregate payments of up to $12.5m upon reaching Xerava net sales milestones beginning in 2021.

Xerava is a tetracycline developed by Tetraphase for the treatment of serious and life-threatening infections.

The deal, approved by both parties’ boards of directors, is expected to close in the second quarter of the year.

Tetraphase and AcelRx also signed a separate agreement to jointly promote Xerava to treat complicated intra-abdominal infections (cIAI) and Dsuvia for acute pain in medically supervised settings.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

This agreement will allow the companies to immediately benefit from the promotion of several products, along with access to respective customer networks.

The combined sales team is expected to cover 70% of each party’s originally targeted hospitals.

Tetraphase Pharmaceuticals president and CEO Larry Edwards said: “This transaction is an important move forward for Tetraphase and more importantly, for Xerava and the patients who need this treatment.

“We continue to believe that Xerava is a key addition to the hospital anti-infective armamentarium, and believe that together with AcelRx we will be able to more effectively bring new treatments to patients in healthcare institutions.”

Following the closure of the deal, Tetraphase will become a privately held company.

AcelRx Pharmaceuticals CEO Vince Angotti said: “We look forward to integrating Xerava and the existing Tetraphase commercial infrastructure with our own as we strengthen our position on promoting innovative products to healthcare institutions allowing patients access to new and improved treatments.”