Quebec-based Clementia Pharmaceuticals, which specializes in the treatment of rare diseases, is on the brink of being acquired by French pharmaceutical giant Ipsen, which is ready to pay up to $1.3 billion U.S. for the corporation.
Announced on Monday, the deal would allow Ipsen to access to palovarontene, a treatment in the final stages of development aimed at patients suffering from very rare forms of bone disease.
Ipsen is offering $25 Canadian per share of Clementia, a bid that represents $1.04 billion U.S. Additional payments could go up to $6 U.S. per share if certain objectives are reached by 2020.
The boards of both companies have announced that they favour the deal, which must first obtain the usual approvals and the closing of which is foreseen for the second quarter of 2019.
The value of the Quebec firm, which is traded on NASDAQ, is estimated at $564 million U.S. Last Friday Clementia shares closed at $14.92. Ipsen’s offer would represent a 77-per-cent increase in per-share value.
Clementia shares have been traded since August of 2017 as part of a public offering aimed at raising $120 million U.S.
Ipsen expects palovarontene to be approved next year in the United States, which would pave the way for its marketing in the U.S. and then Europe, if everything proceeds as expected.
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