Acer Therapeutics (NASDAQ:ACER) stock is taking off on Thursday after the pharmaceutical company announced an acquisition deal with Zevra Therapeutics (NASDAQ:ZVRA).
According to a press release from the company, Zevra Therapeutics will be acquiring it with $15 million worth of ZVRA stock. That will see investors in ACER stock get 0.121 shares of ZVRA stock for each share that they own.
To go along with this, there’s also an option for investors to receive Contingent Value Rights (CVRs) based on certain commercial and regulatory milestones. That could result in cash payments up to $76 million if those milestones are met.
Joshua Schafer, Chief Commercialization Officer and Executive Vice President of Business Development of Zevra Therapeutics, said the following about the acquisition.
“We believe that Acer’s portfolio of rare disease programs, including the recent U.S. commercial approval of OLPRUVA for UCDs, is a perfect strategic fit for Zevra and creates significant opportunity for us to positively impact patient lives while creating shareholder value.”
Timing Of The ACER Stock Deal
Acer Therapeutics and Zevra Therapeutics are expecting the acquisition to close in the fourth quarter of 2023. However, first, it will have to get approval from regulators and shareholders. The deal already has the support of both companies’ Boards of Directors.
ACER stock is up 85.2% as of Thursday morning as some 12 million shares of the stock change hands. For the record, its daily average trading volume is about 143,000 shares.
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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.
