Antares Pharma (NASDAQ:ATRS) stock is rocketing higher on Wednesday after the pharmaceutical company reached an acquisition agreement with Halozyme Therapeutics (NASDAQ:HALO).
This deal has Halozyme Therapeutics valuing Antares Pharma at $960 million. That will see Halozyme Therapeutics paying $5.60 per share in cash for ATRS stock. This represents a roughly 49.7% premium to the stock’s closing price on Tuesday.
According to a press release, the deal will be immediately accretive to Halozyme Therapeutics’s 2022 revenue and non-GAAP earnings. The company also expects it to accelerate top- and bottom-line growth through 2027.
In addition to that, Halozyme Therapeutics made sure to reaffirm its guidance for the full year of 2022. The company also still intends to introduce a $750 million share repurchase program.
Dr. Helen Torley, president and CEO of Halozyme Therapeutics, said the following in the news release sending ATRS stock higher today.
“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.”
The acquisition agreement has the full support of both companies’ Boards of Directors. Currently, they are expecting the deal to close in the second half of the year.
The acquisition news also has ATRS stock seeing heavy trading today. As of this writing, more than 70 million shares of the stock have changed hands. That’s quite the jump from its daily average trading volume of about 806,000 shares.
ATRS stock is up 49.1% as of Wednesday morning.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.