Receive our newsletter – data, insights and analysis delivered to you
  1. News
March 17, 2020

Tetraphase Pharmaceuticals to merge with AcelRx

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

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.

Content from our partners
Extractables and leachables analysis in pharmaceutical quality control
How Hengst helped to keep Germany’s charity “star singers” shining
Why this global life sciences COO believes relocation to Charleston, SC, was key to achieving next-level success

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.”

Related Companies

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. A weekly roundup of the latest news and analysis, sent every Friday. The pharmaceutical industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU