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Bellus Health (BLU) Stock Up 99% on $2B Buyout Offer From GSK
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Bellus Health and GSK plc (GSK - Free Report) announced that the former got an offer to be acquired by the latter for $14.75 per share of common stock in cash, representing an approximate total equity value of $2 billion (£1.6 billion). Bellus’ stock skyrocketed 98.9% on Tuesday, following the acquisition agreement.
The per-share price represents a premium of approximately 103.2% to Bellus’ closing stock price on Apr 17, 2023, and a premium of approximately 101% to its volume-weighted average price over the last 30 trading days.
In the past year, shares of Bellus have rallied 67.5% against the industry’s 11.6% decline.
Image Source: Zacks Investment Research
The successful acquisition of Bellus will add its refractory chronic cough (RCC) candidate, camlipixant, to GSK’s portfolio of drugs. Camlipixant, a potential best-in-class and highly selective P2X3 antagonist, is currently in phase III development for the first-line treatment of adult patients with RCC.
Notably, RCC is a condition that is observed most in adults aged 50-60 years. Severe forms of RCC can cause 900 coughs daily, resulting in degraded quality of life. Currently, there are no approved medicines for RCC in the United States and European Union, representing a serious unmet medical need.
In the past year, shares of GSK have plunged 36.8% compared with the industry’s 8% decline.
Image Source: Zacks Investment Research
Per the agreement, the acquisition of Bellus Health by GSK will be carried out through a Plan of Arrangement under the Canada Business Corporations Act. The execution of the agreement is contingent on certain customary conditions, which include, approval by some regulatory authorities and shareholders' approval.
Both parties expect to successfully close the acquisition deal in the third quarter of 2023 or earlier.
We would like to remind the investors that in December 2021, Bellus reported positive top-line data from its phase IIb SOOTHE study of the 50 mg and 200 mg twice-daily doses of camlipixant. The study achieved its statistically significant primary endpoint with a 34% placebo-adjusted reduction in 24-hour cough frequency observed at day 28 of the study. The candidate was overall well-tolerated with low rates of taste-related adverse events reported (≤6.5%) at all doses.
Based on the encouraging phase IIb results, Bellus initiated its CALM phase III development program consisting of the CALM-1 and CALM-2 studies evaluating camlipixant. Data from the CALM-1 and CALM-2 studies is expected in the second half of 2024 and 2025, respectively. BLU is also currently evaluating a once-daily formulation for camlipixant for the same indication in a phase I study.
The acquisition of Bellus is expected to immensely complement GSK’s expertise in respiratory medicines. It shall grant Bellus access to GSK’s state-of-the-art research and development, manufacturing and commercialization capabilities for the development and commercialization of camlipixant.
GSK expects the acquisition to be accretive to adjusted EPS from 2027, the expected first full year of camlipixant’s sales, assuming the anticipated regulatory approval and launch in 2026. GSK also believes that camlipixant has the potential to deliver significant sales through 2031 and beyond.
The acquisition agreement resulted in no change in GSK’s full-year 2023 guidance, its medium-term outlook for 2021-2026 of more than 5% sales and 10% adjusted operating profit CAGR at constant exchange rate.
In the past 90 days, the Zacks Consensus Estimate for Aptinyx’s 2023 loss per share has narrowed from 77 cents to 47 cents. In the past year, shares of Aptinyx have fallen by 88%.
APTX beat estimates in each of the trailing four quarters, delivering an average earnings surprise of 6.56%.
In the past 90 days, the Zacks Consensus Estimate for Acadia Pharmaceuticals’ 2023 loss per share has narrowed from 87 cents to 57 cents. In the past year, shares of Acadia Pharmaceuticals have fallen by 11.6%.
ACAD beat estimates in two of the trailing four quarters, missing the mark on other two occasions, delivering an average negative earnings surprise of 6.33%.
Image: Bigstock
Bellus Health (BLU) Stock Up 99% on $2B Buyout Offer From GSK
Bellus Health and GSK plc (GSK - Free Report) announced that the former got an offer to be acquired by the latter for $14.75 per share of common stock in cash, representing an approximate total equity value of $2 billion (£1.6 billion). Bellus’ stock skyrocketed 98.9% on Tuesday, following the acquisition agreement.
The per-share price represents a premium of approximately 103.2% to Bellus’ closing stock price on Apr 17, 2023, and a premium of approximately 101% to its volume-weighted average price over the last 30 trading days.
In the past year, shares of Bellus have rallied 67.5% against the industry’s 11.6% decline.
Image Source: Zacks Investment Research
The successful acquisition of Bellus will add its refractory chronic cough (RCC) candidate, camlipixant, to GSK’s portfolio of drugs. Camlipixant, a potential best-in-class and highly selective P2X3 antagonist, is currently in phase III development for the first-line treatment of adult patients with RCC.
Notably, RCC is a condition that is observed most in adults aged 50-60 years. Severe forms of RCC can cause 900 coughs daily, resulting in degraded quality of life. Currently, there are no approved medicines for RCC in the United States and European Union, representing a serious unmet medical need.
In the past year, shares of GSK have plunged 36.8% compared with the industry’s 8% decline.
Image Source: Zacks Investment Research
Per the agreement, the acquisition of Bellus Health by GSK will be carried out through a Plan of Arrangement under the Canada Business Corporations Act. The execution of the agreement is contingent on certain customary conditions, which include, approval by some regulatory authorities and shareholders' approval.
Both parties expect to successfully close the acquisition deal in the third quarter of 2023 or earlier.
We would like to remind the investors that in December 2021, Bellus reported positive top-line data from its phase IIb SOOTHE study of the 50 mg and 200 mg twice-daily doses of camlipixant. The study achieved its statistically significant primary endpoint with a 34% placebo-adjusted reduction in 24-hour cough frequency observed at day 28 of the study. The candidate was overall well-tolerated with low rates of taste-related adverse events reported (≤6.5%) at all doses.
Based on the encouraging phase IIb results, Bellus initiated its CALM phase III development program consisting of the CALM-1 and CALM-2 studies evaluating camlipixant. Data from the CALM-1 and CALM-2 studies is expected in the second half of 2024 and 2025, respectively. BLU is also currently evaluating a once-daily formulation for camlipixant for the same indication in a phase I study.
The acquisition of Bellus is expected to immensely complement GSK’s expertise in respiratory medicines. It shall grant Bellus access to GSK’s state-of-the-art research and development, manufacturing and commercialization capabilities for the development and commercialization of camlipixant.
GSK expects the acquisition to be accretive to adjusted EPS from 2027, the expected first full year of camlipixant’s sales, assuming the anticipated regulatory approval and launch in 2026. GSK also believes that camlipixant has the potential to deliver significant sales through 2031 and beyond.
The acquisition agreement resulted in no change in GSK’s full-year 2023 guidance, its medium-term outlook for 2021-2026 of more than 5% sales and 10% adjusted operating profit CAGR at constant exchange rate.
Bellus Health Inc. Price and Consensus
Bellus Health Inc. price-consensus-chart | Bellus Health Inc. Quote
Zacks Rank and Stocks to Consider
Currently, both Bellus Health and GSK have a Zacks Rank #3 (Hold).
Some better-ranked stocks from the same industry are Aptinyx and Acadia Pharmaceuticals (ACAD - Free Report) , both carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the past 90 days, the Zacks Consensus Estimate for Aptinyx’s 2023 loss per share has narrowed from 77 cents to 47 cents. In the past year, shares of Aptinyx have fallen by 88%.
APTX beat estimates in each of the trailing four quarters, delivering an average earnings surprise of 6.56%.
In the past 90 days, the Zacks Consensus Estimate for Acadia Pharmaceuticals’ 2023 loss per share has narrowed from 87 cents to 57 cents. In the past year, shares of Acadia Pharmaceuticals have fallen by 11.6%.
ACAD beat estimates in two of the trailing four quarters, missing the mark on other two occasions, delivering an average negative earnings surprise of 6.33%.
GSK PLC Sponsored ADR Price and Consensus
GSK PLC Sponsored ADR price-consensus-chart | GSK PLC Sponsored ADR Quote