Assertio Scoops Up Spectrum Pharma In $248M Stock Deal

• Assertio Holdings Inc (NASDAQ: ASRT) will acquire Spectrum Pharmaceuticals Inc (NASDAQ: SPPI) in an all-stock and contingent value rights (CVR) transaction.

• Under the terms of the agreement, each Spectrum share will be exchanged for a fixed exchange ratio of 0.1783 shares of Assertio common, implying an upfront value of $1.14 per Spectrum share.

• Additionally, Spectrum stockholders will receive one CVR per Spectrum share, entitling them to receive up to an additional $0.20 per share (approximately $43 million), payable in cash or stock at Assertio’s election, for $1.34 (approximately $291 million), by the end of 2024 and 2025.

• Also Read: After FDA Rejection, Spectrum Shelves Development On Poziotinib.

• Following the close of the transaction, Assertio stockholders will own approximately 65% of the combined company, and Spectrum stockholders will own approximately 35% on a fully diluted basis.

• “The addition of Spectrum’s commercial capabilities and Rolvedon, a novel long-acting G-CSF product recently launched into a blockbuster market in October 2022, exemplifies Assertio’s attractiveness as an acquirer of new, accretive assets across diverse therapeutic categories,” Assertio’s president and CEO Dan Peisert said.

• The transaction is expected to be accretive to Assertio’s adjusted EPS and operating cash flow in 2024.

• Assertio intends to add operating costs of approximately $60 million annually.

• Price Action: ASRT shares are down 19.5% at $5.15 on the last check Tuesday.

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