Shares of Intercept Pharmaceuticals Inc. (ICPT) are expected to surge following the biopharmaceutical company’s announcement of an agreement to be acquired by Italy’s Alfasigma S.p.A. This deal values Intercept shares at an impressive 82% premium. Intercept stock has been temporarily halted for news until 8:30 a.m. Eastern time.
A Lucrative Offer
Under the terms of the agreement, Alfasigma will pay $19 in cash for each outstanding Intercept share, representing a significant increase from Monday’s closing price of $10.44 per share. With 41.8 million shares outstanding as of June 30, this bid places the total value of Intercept at approximately $793.9 million.
A Strategic Move
Alfasigma Chairman, Stefano Golinelli, expressed his enthusiasm for the acquisition, stating, “Today’s proposed acquisition aligns perfectly with our strategy to establish a solid presence in the U.S. market, particularly within our core gastroenterological area, while simultaneously expanding our innovation pipeline.”
Value for Shareholders
Intercept CEO, Jerry Durso, also praised the transaction, remarking, “We are pleased to announce this valuable transaction with Alfasigma, which delivers substantial value to our shareholders.”
Expected Closing Date
The deal is anticipated to be finalized by the end of 2023, providing both companies with ample time to complete the necessary procedures.
Performance Overview
While Intercept’s stock has experienced a 15.6% decline year-to-date, it is worth noting that the iShares Biotechnology ETF (IBB) has also suffered a 6.9% decrease during the same period. In contrast, the broader S&P 500 (SPX) has seen a positive gain of 13%.