Xeris Pharmaceuticals, Inc. (NasdaqGS:XERS) entered into a definitive agreement to acquire Strongbridge Biopharma plc (NasdaqGS:SBBP) from HealthCap VI L.P., a fund managed by Odlander, Fredrikson & Co. AB, Caxton Alternative Management LP, and others for approximately $180 million on May 24, 2021. The consideration will comprise of Strongbridge shareholders receiving a fixed exchange ratio of 0.7840 shares of Xeris common stock for each Strongbridge ordinary share they own. Strongbridge shareholders will also receive 1 non-tradeable contingent value rights (CVR) for each Strongbridge ordinary share they own, worth up to an additional $1 payable in cash or Xeris (at Xeris' election) upon achievement of certain triggering events such as the listing of at least one issued patent for KEVEYIS® in the U.S. FDA's Orange Book by the end of 2023 or at least $40 million in KEVEYIS® annual net sales in 2023 ($0.25 per ordinary share); achievement of at least $40 million in RECORLEV® annual net sales in 2023 ($0.25 per ordinary share); and achievement of at least $80 million in RECORLEV® annual net sales in 2024 ($0.50 per ordinary share). The minimum payment on the CVR per Strongbridge ordinary share is zero and the maximum payment is $1.00 in cash or Xeris common stock, at Xeris' election. Each Strongbridge Share Award will be vested and settled for Strongbridge Shares immediately prior to the effective time of the Scheme. Each Strongbridge Option shall become fully vested and exercisable immediately prior to the effective time of the Scheme. Each unexercised Strongbridge Option will be assumed by Xeris and converted into an option to purchase Xeris Shares. Xeris shall issue to each holder of a Strongbridge Rollover Option one CVR with respect to each Strongbridge Share subject to the applicable Strongbridge Option. Each outstanding and unexercised Strongbridge Private Placement Warrant will be assumed by Xeris such that the applicable holders will have the right to subscribe for Xeris Shares. Each outstanding and unexercised Strongbridge Assumed Warrant will be assumed by Xeris such that, upon exercise, the applicable holders will have the right to have delivered to them the Reference Property. Upon completion, Xeris shareholders will own 60% and Strongbridge will own 40% of Xeris. Strongbridge will become a wholly owned subsidiary of Xeris Biopharma Holdings, Inc. Upon close of the transaction, the businesses of Xeris and Strongbridge will be combined under a new entity to be called Xeris Biopharma Holdings, Inc which will be incorporated in Delaware and will continue to have its principal executive offices in Chicago, Illinois. Xeris Biopharma Holdings' shares of common stock are expected to trade on the Nasdaq Global Select Market under the ticker XERS. At termination, an amount of $1.95 million is payable to Strongbridge by Xeris.

Xeris Chairman and Chief Executive Officer, Paul Edick, will act as Chairman and Chief Executive Officer of Xeris Biopharma Holdings. The Xeris Biopharma Holdings Board will comprise the other existing Xeris Directors, together with John Johnson and Garheng Kong who will join the combined company's Board as new Independent Directors. A Director in common to both Xeris and Strongbridge, Jeffrey W. Sherman, will continue to serve on the Xeris Biopharma Holdings Board following the transaction. The transaction is subject to customary closing conditions such as approval by Xeris and Strongbridge shareholders; the sanction by the Court of the Scheme and registration of the Court Order with the Irish Registrar of Companies; the termination or expiration of any waiting periods applicable to the consummation of the merger under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and other similar laws in other jurisdictions; the Registration Statement on Form S-4 to be filed by Xeris Biopharma Holdings in connection with the transactions having become effective under the Securities Act of 1933 and not being the subject of any stop order or proceedings seeking any stop order; to the extent that the Acquisition constitutes a concentration within the EC Merger Regulation or otherwise constitutes a concentration that is subject to the EC Merger Regulation, the European Commission having decided to allow closing of the Transaction; and the approval by NASDAQ for listing of the Xeris Biopharma Holdings Shares to be issued in the Scheme. The independent Xeris and Strongbridge Directors recommend that Xeris stockholders and Strongbridge stockholders respectively to vote “FOR” the proposal to approve the merger. The transaction has been unanimously approved by the Boards of Xeris and Strongbridge. Certain Strongbridge Directors, Executive Officers, Caxton Alternative Management LP and HealthCap VI, L.P., representing approximately 17% of Strongbridge's outstanding ordinary shares, have entered into irrevocable undertakings to vote in favor of the transaction. Court Meeting is scheduled on September 8, 2021. Strongbridge shareholders special meeting is scheduled on September 14, 2021. Strongbridge's shareholders approved the transaction in a special court-ordered meeting of shareholders on September 8, 2021. At least 98% of the votes cast at both a special court-ordered meeting of shareholders (the “ Court Meeting ”) and at an extraordinary general meeting of shareholders (the “ EGM ”) were in favor of the transaction, representing (in each case) approximately 67% of the shares outstanding and eligible to be voted at each of the Strongbridge shareholder meetings held on September 8, 2021. Stockholders of Xeris Pharmaceuticals approved the merger in a special meeting of stockholders held on September 14, 2021. Approximately 97% of the shares voted were cast in favor of the acquisition, representing approximately 59% of Xeris' total outstanding shares of common stock. The transaction is expected to close early in the fourth quarter of 2021.

SVB Leerink acted as financial advisor and fairness opinion provider while Joseph Theis, Andrew Goodman, James Matarese, Stephanie Richards, Paul Jin, Kirby Lewis, and Brady Cummins, Mark Smith, Nathan Brodeur, Caroline H. Bullerjahn, Sarah Bock, Monica Patel, Jennifer Fay, Catherine McCarty, Stephen P. Waters, Jacqueline Klosek, and Daniel Karelitz of Goodwin Procter LLP, and Richard Marron, Ronan Lyons and Alan Casey of A&L Goodbody LLP acted as legal advisors to Xeris. MTS Health Partners, LP acted as financial advisor; and Graham Robinson, Michael Ena, Maya Florence, M. Janine Jjingo, Timothy F. Nelson, Regina Olshan, Maria Raptis, Resa K Schlossberg, Chade Severin, Moshe Spinowitz and Stephen Long of Skadden, Arps, Slate, Meagher & Flom, LLP, and Maura McLaughlin, Fintan Clancy, and Conon O'Keeffe of Arthur Cox LLP acted as legal advisors to Strongbridge. MTS Securities acted as fairness opinion provider to the Board of Directors of Strongbridge. Innisfree M&A Inc. is acting as proxy solicitor to Xeris for a fee of $0.02 million. MacKenzie Partners, Inc. is the proxy solicitation agent for Strongbridge for a fee of $12,500 plus reimbursement for its reasonable and customary documented expenses in connection with the solicitation. The transfer agent and registrar for Xeris common stock is Computershare Trust Company, N.A. Xeris has agreed to pay SVB Leerink an aggregate fee of $2.5 million, $0.75 million of which was paid upon the rendering by SVB Leerink of its opinion. Strongbridge paid MTS a fee of $2 million for rendering the MTS Opinion. Strongbridge will also pay to MTS Health Partners a fee equal to approximately $3.4 million, with the fee paid by Strongbridge upon delivery of the MTS Opinion credited towards such amount, and additional fees of up to approximately $1.1 million upon the payment of the amounts payable to holders of the CVRs upon the achievement of the conditions for the Milestone Payments.