Benzinga - by Vandana Singh, Benzinga Editor.
Zevra Therapeutics Inc (NASDAQ: ZVRA) has agreed to acquire Acer Therapeutics Inc (NASDAQ: ACER) for up to $91 million. The transaction is expected to close in Q4 2023.
The deal consideration includes approximately 2.96 million shares of Zevra common stock valued at $15 million and up to an additional $76 million in a series of potential cash payments according to non-transferable Contingent Value Rights (CVRs) upon achievement of certain commercial and regulatory milestones for Acer's Olpruva (sodium phenylbutyrate) and Acer's Edsivo (celiprol) within specified time.
Additional cash payments are also possible under the CVRs for milestones involving Acer's early-stage program ACER-2820 (emetine).
Zevra has also purchased Acer's secured debt at a discount from Nantahala Capital.
In addition, Zevra has agreed to provide Acer with a bridge loan facility for up to $16.5 million.
Zevra to assume commercialization efforts of Olpruva, recently approved for urea cycle disorders.
Olpruva commercial operations provide Zevra scale and cost synergies to complement the potential launch of arimoclomol.
Wednesday, Acer Therapeutics agreed to reacquire worldwide development, commercialization, and economic rights to Olpruva from Relief Therapeutics, excluding the European Union, Liechtenstein, San Marino, Vatican City, Norway, Iceland, Principality of Monaco, Andorra, Gibraltar, Switzerland, U.K., Albania, Bosnia, Kosovo, Montenegro, Serbia and North Macedonia.
In return, Relief will receive an upfront payment of $10 million, with an additional payment of $1.5 million due on the first anniversary of the $10 million payment.
Price Action: ACER shares are up 80.30% at $1.10, and ZVRA stock is up 1.32% at $5.37 during the premarket session on the last check Thursday.
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