Antares Pharma Inc shares up 45% on Wednesday: how come?

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Antares Pharma Inc shares (NASDAQ: ATRS) are up 45% on Wednesday after Halozyme Therapeutics said it will buy the New Jersey-headquartered company for $960 million in cash.

Details of the agreement

The deal translates to $5.60 per share for Antares Pharma shareholders that translates to a close to 50% premium on where the stock closed the regular session on Tuesday.

The transaction is expected to complete before the start of the second half of 2022. Halozyme expects the acquisition to be accretive to its revenue and adjusted EPS in 2022. The deal will fuel earnings and revenue growth through 2027.

Board of both companies have unanimously approved the deal. Halozyme shares are up nearly 1.0% on Wednesday.

CEO Helen Torley’s remarks

According to Halozyme, the acquisition of Antares will set it up as a leading drug delivery and specialty product company. In the press release, CEO Helen Torley said:

The addition of Antares, particularly with its best-in-class auto injector platform and specialty commercial business, augments Halozyme’s strategy, further strengthens our position as a leading drug delivery company and extends our strategy to include specialty products.

Also on Wednesday, Halozyme confirmed that it will buyback $750 million worth of its own stock over the next three years. BofA Securities and Wells Fargo Securities are serving as Halozyme’s financial advisors for the deal.

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Source: https://invezz.com/news/2022/04/13/antares-pharma-inc-shares-up-45-on-wednesday-how-come/