Spectrum Pharmaceuticals (NASDAQ:SPPI) stock is soaring after an all-stock acquisition deal with Assertio Holdings was announced Tuesday morning.
The $248 million purchase price values Spectrum shares at $1.14 each, a significant premium over its Tuesday closing price of $0.69.
The stock price surged more than 30% to $0.90 Tuesday morning.
“The addition of Spectrum’s commercial capabilities and ROLVEDON, a novel long-acting G-CSF product recently launched into a blockbuster market in October 2022, exemplifies Assertio’s attractiveness as an acquirer of new, accretive assets across diverse therapeutic categories,” Assertio CEO Dan Peisert said in a statement.
That new addition isn’t enough yet to distract investors from the premium it paid for Spectrum. Assertio shares fell 21% to $5.06.
“Our combined assets and commercial infrastructure will position us to accelerate ROLVEDON’s launch for the benefit of patients, maximize its potential and drive further growth,” Spectrum CEO Tom Riga said.
“We are proud of the launch trajectory our team has achieved with ROLVEDON and look forward to an exciting new chapter.”
Following the deal, Assertio shareholders will own 65% of the combined companies and Spectrum shareholders will own 35%.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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