Pet Medicine Merger: Zoetis Agrees To But Nexvet

(RTTNews) - Zoetis Inc. (ZTS) has reached a deal to acquire Nexvet Biopharma (NVET) in a deal valued at about $85 million.

The purchase price for the deal is $6.72 per share. This represents a premium of 66% compared to the closing price the day before the merger was announced. The deal requires shareholder approval to be completed, as well as approval by the Irish High Court. The deal is expected to close in the second half of 2017.

Ireland-based Nexvet is developing a product for the treatment of chronic pain associated with osteoarthritis in dogs. Zoetis said the acquisition of this product has the potential to expand its portfolio of solutions for chronic pain in dogs. Nexvet is working on a similar product for cats.

Zoetis currently markets Rimadyl, an anti-inflammatory drug for dogs.