US-based biotechnology company United Therapeutics has signed a definitive merger agreement to buy SteadyMed for a total consideration of $216m, including a $75m contingent.
SteadMed will be paid $4.46 per share in cash at closing and another $2.63 per share upon United Therapeutics reaching a milestone in the commercialisation of Trevyent.
Trevyent is a drug-device combination being developed by SteadyMed as a subcutaneous formulation to treat pulmonary arterial hypertension (PAH).
It integrates the company’s two day, single-use disposable PatchPump with a vasodilatory prostacyclin analogue called treprostinil.
The acquisition is set to complement United Therapeutics’ portfolio aimed at providing therapies for orphan diseases, including PAH.
SteadyMed also works towards the development and commercialisation of drug candidates for orphan and high-value diseases with unmet parenteral delivery needs.
United Therapeutics chairman and CEO Martine Rothblatt said: “We are optimistic about acquiring SteadyMed and adding Trevyent to our pipeline of products to treat PAH.
“We are especially impressed with SteadyMed’s management team and global supply chain. Trevyent fits in well with our mission, and we look forward to bringing the product to the maximum number of patients as soon as possible.”
SteadyMed president and CEO Jonathan Rigby said: “United Therapeutics has always been at the forefront of developing therapies to treat PAH, and we are delighted at the prospect of our companies coming together, as one, to continue that mission.
“We believe that this proposed acquisition will help us realise our commitment to bring Trevyent to market to improve the lives of patients with PAH.”
The deal is subject to customary closing conditions and is expected to close in the third quarter of this year.