Swedish Orphan Biovitrum AB (publ) is acquiring Durham, N.C.-based Dova Pharmaceuticals Inc. in a deal worth up to $915 million to bolster its hematology product pipeline.
Sobi is offering $27.50 per share in cash for every Dova stock it buys, representing a 36% premium to the U.S.-based company's closing stock price Sept. 27. Dova shareholders will also receive an additional $1.50 per share in cash if Doptelet, also called avatrombopag, is approved to treat chemotherapy-induced thrombocytopenia in the U.S., for which there are no approved treatments.
Patients with thrombocytopenia have low blood platelets, cells that help blood clot. Such patients have an increased risk of bleeding during and after surgical procedures. Doptelet is approved to treat the condition in the U.S. and EU but for adult patients with chronic liver disease who are scheduled to have a surgical procedure.
The transaction is backed by the boards of both companies and is expected to close in the fourth quarter of the year, subject to customary closing conditions, including shareholder approval. Certain Dova stockholders — including Paul Manning, who represents a majority of the company's outstanding shares — have committed to tender their shares to Sobi's offer.
Dova will be delisted from the Nasdaq Global Select Market following the merger.
Sobi will finance the acquisition through a combination of existing cash and debt. The Sweden-based company is securing a 3 billion Swedish kronor term loan facility and a €280 million revolving credit facility from Danske Bank and Skandinaviska Enskilda Banken, both of which last for up to five years.
Morgan Stanley, Cravath Swaine & Moore LLP and Mannheimer Swartling Advokatbyrå AB are advising Sobi on the deal. Dova is being advised by Jefferies LLC, Evercore and Cooley LLP.
As of Sept. 27, US$1 was equivalent to 9.80 Swedish kronor.
