By Colin Kellaher
Shares of Concert Pharmaceuticals Inc. jumped 20% on Thursday after the late-stage biotechnology company agreed to be acquired by India's Sun Pharmaceutical Industries Ltd. for an initial $576 million in cash.
Under the deal, Concert investors would receive $8 a share in cash, a 16% premium to Wednesday's closing price of $6.90, along with contingent value rights worth up to an additional $3.50 a share, bringing the potential value of the deal to $11.50 a share, roughly 67% above Wednesday's close.
The contingent value rights are linked to Concert's deuruxolitinib drug candidate for alopecia areata, a chronic autoimmune skin disease for which there are currently limited treatment options.
The deal is slate to close during the current quarter.
Concert shares were recently changing hands at $8.28, up 20%.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
01-19-23 1025ET