Eidos stock has made a significant move after the company announced a merger agreement with BridgeBio for a cash and stock deal worth $2.8 billion.
Shares of Eidos Therapeutics Inc. (EIDX) have surged above 40% during today’s trading session. The rise in Eidos shares has been driven by the announcement of merger deal with BridgeBio Pharma, Inc.
Eidos is trading around its highest trading price mark above $70. As of 3:09 P.M. EDT, EIDX had escalated 41.95% trading at $73.70. The stock traded at the day’s highest of $74.27 before starting today’s session at $67.62. The market capitalization of the company stands at $2.829 billion.
The company recently announced that it has entered into a definitive agreement under which BridgeBio has agreed to acquire all of the outstanding common stock of Eidos it does not already own, representing approximately 36.3% of Eidos’ outstanding shares.
Under the agreement terms, Eidos shareholders will have the option either to receive 1.85 common stock shares of BridgeBio or $73.26 in cash per Eidos share in the transaction, which would be almost $175 million of aggregate in a cash payment. With about 38.57 million shares outstanding, the deal price values Eidos at about $2.83 billion.
The board members of both the companies have agreed to seal the deal with the unanimous recommendation of a special committee of independent directors of Eidos.
The transaction is anticipated to close in the first quarter of 2021 and is subject to the approval of a majority of Eidos’ shares held by stockholders other than BridgeBio and its affiliates.
Currently, Eidos is working on the development of a potential best-in-class TTR stabilizer, acoramidis, for patients suffering from ATTR cardiomyopathy and polyneuropathy. ATTR is a fast growing and fatal disease in case of no treatment. BridgeBio in collaboration with Eidos plans to advance acoramidis through the development process and into the marketplace after its approval.
The founder and Chief Executive Officer BridgeBio and CEO of Eidos, Neil Kumar said:
“This transaction removes the operational complexity of the current ownership structure and allows us to fully unlock the potential of this investigational medicine for patients and investors.”
The screening during Phase 3 ATTRibute-CM study of acoramidis has been completed and it is predicted that a total of 600 participants will be enrolled.
BridgeBio with its creation, test, deliver and discover platform targets described genetic diseases at their source. Through this platform, Eidos will utilize BridgeBio’s global clinical development and regulatory expertise, its developing commercial infrastructure, and its broader capital base to reach more patients more effectively.
Both companies are looking forward to long-term progress. With the closing of the merger transaction, Eidos Therapeutics, Inc. (EIDX) will become a wholly-owned subsidiary of BridgeBio.