The USA's NuPathe has terminated its deal with Endo Health Solutions and plumped for the $144 million takeover offer made by Teva Pharmaceutical Industries.
At the end of last year, Endo bid $2.85 per share in cash, which equates to $105 million, to access to NuPathe's Zecuity (sumatriptan), the only US Food and Drug Administration-approved migraine patch, plus additional payments. However, earlier this month the Israeli major has now come in with a bid of $3.65 per share.
The value of the package could rise as NuPathe shareholders would get rights to additional cash payments of up to $3.15 per share if sales of Zecuity meet expectations.
Teva's offer represents a premium of 28% over the upfront sum offered by Endo, "with equal contingent cash consideration," said NuPathe chief executive Armando Anido. He added that "as a recognised leader in the field of diseases of the central nervous system, we believe that Teva is well-positioned to maximise Zecuity's potential".
Endo chief executive Rajiv de Silva was gracious, saying that the agreement signed with Teva "is positive news for NuPathe stockholders". As a result, the firm is banking a $5 million termination fee and he added that "we will remain disciplined in our approach to M&A and will look to deploy capital on other opportunities to create value".