Intercept Pharmaceuticals (NASDAQ:ICPT) shares surged 79% to $18.64 in late-morning trading on Tuesday after the biopharmaceutical company specializing in rare and serious liver diseases announced that it has agreed to be acquired by Alfasigma SpA, one of Italy’s largest pharma companies, for $19 per share in cash, or an 82% premium to Intercept’s closing price on September 25, 2023.
Intercept’s lead medicine is Ocaliva, the only US Food and Drug Administration (FDA) approved second-line treatment for primary biliary cholangitis (PBC), a progressive autoimmune disease affecting the liver, which generated revenue of $152 million during the first half of 2023.
"Intercept represents a compelling fit with Alfasigma’s core business areas of gastroenterology and hepatology, and we believe that the transaction represents a transformational opportunity for both companies," Alfasigma CEO Francesco Balestrieri said in a statement.
The agreement comes just four months after the FDA rejected Intercept’s treatment of pre-cirrhotic fibrosis due to nonalcoholic steatohepatitis (NASH), citing serious concerns about the risk of drug-related liver damage, which sent the company’s stock tumbling.
The transaction is expected to close by the end of 2023.
Shares of Intercept Pharmaceuticals (NASDAQ:ICPT) have gained 49% year to date.
Contact Sean at sean@proactiveinvestors.com