Noven Pharmaceuticals Inc. (NOVN) will be acquired by Japan-based Hisamitsu Pharmaceutical Co. for $428 million in an all-cash deal.
Shares of this Zacks #1 Rank (“Strong Buy”) stock has surged more than 22% so far today, accompanied by extraordinarily high volume of about 8.5 million, compared to the average daily volume of around 251,000.
The Japanese company has offered $16.50 to acquire each share of Noven, a premium of 22% over Noven’s closing price on Monday. Boards of both the companies have already approved the deal and the tender offer is likely to begin from Jul 28 and continue for 20 business days.
As per the deal, Noven is likely to continue operations as a standalone unit from its current facilities in Miami and New York with its existing work force. The company also said that Jeffrey F. Eisenberg will be named Noven’s president & CEO after the deal is complete.
The acquisition will enable Hisamitsu, which currently has a 4.9% stake in Noven, to expand its presence in the U.S., as well as harness Noven’s technologies related to drug delivery through the skin for new product development.
Meanwhile, Noven, in a separate release, announced positive results from its Phase 2 clinical study evaluating Mesafem for the treatment of vasomotor symptoms (hot flashes) associated with menopause. Encouraged by the results, the company plans to initiate Phase 3 development of the drug by the end of this year.
“NOVN” Free Stock Analysis: Buy? Sell? Hold?
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