Blue Bell’s Achillion Pharmaceuticals Inc., a clinical-stage biopharmaceutical company, is set to be acquired by Boston’s Alexion Pharmaceuticals Inc.
The initial consideration of approximately $930 million, or $6.30 per share of Achillion common stock, will be funded with cash on hand. As part of the acquisition, Alexion will also be acquiring the cash currently on Achillion’s balance sheet. As of September 30, 2019, this was approximately $230 million; the actual amount will be determined as of the transaction close.
The transaction includes the potential for additional consideration in the form of non-tradeable contingent value rights (CVRs), which will be paid to Achillion shareholders if certain clinical and regulatory milestones are achieved within specified periods. These include $1 per share for the U.S. FDA approval of danicopan and $1per share for ACH-5228 Phase 3 initiation.
Pending approvals, the transaction is expected to close in the first half of 2020.