Alexion Pharma To Acquire Achillion Pharma For About $930 Mln Cash

(RTTNews) - Biopharmaceutical company Alexion Pharmaceuticals, Inc. (ALXN) agreed Wednesday to acquire Achillion Pharmaceuticals, Inc. (ACHN) for an initial consideration of approximately $930 million, or $6.30 per share of Achillion common stock, which will be funded with cash on hand.

Achillion is a clinical-stage biopharmaceutical company focused on the development of oral small molecule Factor D inhibitors to treat people with complement alternative pathway-mediated rare diseases, such as paroxysmal nocturnal hemoglobinuria (PNH) and C3 glomerulopathy (C3G)

Achillion currently has two clinical-stage medicines in development, including danicopan (ACH-4471) in Phase 2 and ACH-5228 in Phase 1.

As part of the acquisition, Alexion will also be acquiring the cash currently on Achillion's balance sheet, which is approximately $230 million as of September 30, 2019.

The transaction includes the potential for additional consideration in the form of non-tradeable contingent value rights (CVRs), which will be paid to Achillion shareholders if certain clinical and regulatory milestones are achieved within specified periods. These include $1.00 per share for the U.S. FDA approval of danicopan and $1.00 per share for ACH-5228 Phase 3 initiation.

The transaction is subject to the approval of Achillion shareholders and satisfaction of customary closing conditions and approval from relevant regulatory agencies, including clearance under the Hart-Scott Rodino Antitrust Improvements Act. Pending these approvals, the transaction is expected to close in the first half of 2020.