By Colin Kellaher
Acer Therapeutics shares more than doubled in early trading Thursday after the pharmaceutical company agreed to be acquired by Zevra Therapeutics.
Shares of the Newton, Mass., company were recently changing hands at $1.60, up more than 160%.
Under the agreement, Zevra is issuing about 2.96 million shares, worth roughly $15 million based on Zevra’s early Thursday trading price of $5.06, to acquire Acer.
That equates to about 61 cents a share for Acer, in line with Wednesday’s closing price.
However, the deal also includes contingent value rights worth up to $76 million in cash payments based on milestones tied to Acer’s products and pipeline, potentially driving up the value of the deal significantly.
Write to Colin Kellaher at [email protected]
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