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ARCHIMED to Acquire Esperion for $3.16 a Share Plus CVR

Pharmakon debt financing supports a take-private with a sales-linked contingent payout.

Overview

  • Esperion and an ARCHIMED affiliate announced a definitive agreement Friday that pays $3.16 in cash per share plus a non-tradeable contingent value right tied to up to $100 million in future sales milestones.
  • The offer implies up to about $1.1 billion in equity value and reflects a 58% premium to Esperion’s April 30 closing price.
  • The contingent value right gives shareholders a chance at additional cash if the company’s drugs reach specific net sales targets.
  • Funds managed by Pharmakon Advisors will provide the debt financing, and the deal is not subject to a financing condition.
  • After the deal closes, Esperion will be taken private and delist from Nasdaq, and the company will file an 8-K detailing the transaction, cancel its May 7 earnings call, and still plan to file its first-quarter 10-Q on May 7.