Xeris Pharma To Buy Strongbridge Biopharma

(RTTNews) - Xeris Pharmaceuticals Inc. (XERS) agreed to buy Strongbridge Biopharma plc (SBBP) for stock and contingent value rights or "CVRs".

The agreement, including the maximum aggregate amount payable under the CVRs, values Strongbridge at about $267 million based on the closing price of Xeris common stock of $3.47 on May 21.

As per the terms of the deal, Strongbridge shareholders will receive a fixed exchange ratio of 0.7840 shares of Xeris Biopharma Holdings common stock for each Strongbridge ordinary share they own.

Upon close of the transaction, current Xeris shareholders are expected to own approximately 60% of the combined company, while current Strongbridge shareholders are expected to own approximately 40%.

Upon close of the transaction, the businesses of Xeris and Strongbridge will be combined under Xeris Biopharma Holdings, which will be incorporated in Delaware and will continue to have its principal executive offices in Chicago, IL. On close, Xeris shareholders will exchange each share of Xeris common stock they own for 1 share of Xeris Biopharma Holdings common stock.

Xeris Chairman and CEO, Paul Edick, will act as Chairman and Chief Executive Officer of Xeris Biopharma Holdings. The Xeris Biopharma Holdings board will comprise the other existing Xeris directors, together with John Johnson and Garheng Kong, who will join the combined company's board as new independent directors. A director in common to both companies, Jeffrey Sherman, will continue to serve on the Xeris Biopharma Holdings board following the transaction.

Xeris Biopharma Holdings' shares of common stock are expected to trade on the Nasdaq Global Select Market under the ticker XERS.

The transaction is expected to close early in the fourth quarter of 2021.