GSK has agreed to acquire Bellus Health for $2 billion. That values BLU stock at $14.75 per share, which represents a 103% premium to the company’s closing price yesterday. It’s also a 101% premium to the stock’s volume-weighted average price from the last 30 trading days.
Luke Miels, Chief Commercial Officer of GSK, explains why the company is willing to spend $2 billion on BLU stock:
“Patients suffering from severe forms of refractory chronic cough can experience over 900 coughs daily, resulting in quality-of-life issues. Camlipixant, a novel, highly selective P2X3 antagonist, has the potential to be a best-in-class treatment with significant sales potential. This proposed acquisition complements our portfolio of specialty medicines and builds on our expertise in respiratory therapies.”
Details of the BLU Stock Deal
Bellus Health’s board of directors has given its support to the deal with GSK. That means it will just need approval from shareholders of BLU stock, as well as regulators. If all that goes well, the deal should close in the third quarter of 2023.
GSK points out that it expects the purchase of Bellus Health to be accretive to earnings per share starting in 2027. That’s the first year that the company would see sales from Bellus Health’s Camlipixant. GSK expects to see strong sales from this drug through 2023 and beyond.
News of the deal has BLU stock seeing heavy trading today, with some 23 million shares on the move. For comparison, the company’s daily average trading volume is about 643,000 shares.
BLU stock is up 98.2% during pre-market trading on Tuesday!
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