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Acer (ACER) to Get Acquired by Zevra for $91M, Stock Up
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Acer Therapeutics (ACER - Free Report) announced its definitive agreement to be acquired by Zevra Therapeutics (ZVRA - Free Report) , a company making medicines for rare diseases. Following this news, Acer's shares surged more than 109% on Sep 01.
ZVRA will acquire ACER for a total transaction value of up to $91 million, which includes a stock component of $15 million along with the potential $76 million through contingent value rights, upon achieving specific milestones.
This acquisition will add ACER’s newly approved product, Olpruva (sodiumphenylbutyrate) to Zevra’s portfolio, diversifying its revenue stream. Olpruva was approved by the FDA for treating urea cycle disorders (UCD) in December 2022. UCD is a type of rare genetic metabolic disorder that causes a build-up of toxic levels of ammonia.
The acquisition will also add Acer’s lead candidate Edsivo (celiprolol), which is being developed in a late-stage study for patients with vascular Ehlers-Danlos syndrome (vEDS) who have confirmed type III collagen (COL3A1) mutation, to ZVRA’s protfolio. Patient enrollment in the study is expected to be completed by the first half of 2024. The subsequent development and commercialization of Edsivo will be a huge boost for Zevra as there is currently no approved therapy for vEDS.
Shares of Acer have lost 49% year to date compared with the industry’s 2.3% decline.
Image Source: Zacks Investment Research
The addition of Olpruva aligns perfectly with Zevra's mission of advancing treatments for rare diseases and contributing to its revenue stream. Zevra's commercial portfolio includes Azstarys, approved for treating attention deficit hyperactivity disorder (ADHD), in patients aged six years and older.
Both Acer’s and Zevra's boards of directors have approved the acquisition, which is expected to be finalized by the fourth quarter of 2023, subject to customary closing conditions.
In the past 90 days, the Zacks Consensus Estimate forANI Pharmaceuticals’ earnings has gone up from $3.31 per share to $3.73 for 2023. The bottom-line estimate has increased from $4.32 to $4.35 for 2024 during the same time frame. Shares of the company have rallied 60.6% year to date.
ANIP’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 91.56%.
In the past 90 days, the Zacks Consensus Estimate for Annovis Bio has narrowed from a loss of $4.89 per share to a loss of $4.38 for 2023. The bottom-line estimate has narrowed from a loss of $3.18 to $2.77 for 2024 during the same time frame. Shares of the company have lost 7.7% year to date.
ANVS’ earnings beat estimates in three of the trailing four quarters and missed the mark in one, delivering an average surprise of 13.40%.
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Acer (ACER) to Get Acquired by Zevra for $91M, Stock Up
Acer Therapeutics (ACER - Free Report) announced its definitive agreement to be acquired by Zevra Therapeutics (ZVRA - Free Report) , a company making medicines for rare diseases. Following this news, Acer's shares surged more than 109% on Sep 01.
ZVRA will acquire ACER for a total transaction value of up to $91 million, which includes a stock component of $15 million along with the potential $76 million through contingent value rights, upon achieving specific milestones.
This acquisition will add ACER’s newly approved product, Olpruva (sodiumphenylbutyrate) to Zevra’s portfolio, diversifying its revenue stream. Olpruva was approved by the FDA for treating urea cycle disorders (UCD) in December 2022. UCD is a type of rare genetic metabolic disorder that causes a build-up of toxic levels of ammonia.
The acquisition will also add Acer’s lead candidate Edsivo (celiprolol), which is being developed in a late-stage study for patients with vascular Ehlers-Danlos syndrome (vEDS) who have confirmed type III collagen (COL3A1) mutation, to ZVRA’s protfolio. Patient enrollment in the study is expected to be completed by the first half of 2024. The subsequent development and commercialization of Edsivo will be a huge boost for Zevra as there is currently no approved therapy for vEDS.
Shares of Acer have lost 49% year to date compared with the industry’s 2.3% decline.
Image Source: Zacks Investment Research
The addition of Olpruva aligns perfectly with Zevra's mission of advancing treatments for rare diseases and contributing to its revenue stream. Zevra's commercial portfolio includes Azstarys, approved for treating attention deficit hyperactivity disorder (ADHD), in patients aged six years and older.
Both Acer’s and Zevra's boards of directors have approved the acquisition, which is expected to be finalized by the fourth quarter of 2023, subject to customary closing conditions.
Acer Therapeutics Inc. Price and Consensus
Acer Therapeutics Inc. price-consensus-chart | Acer Therapeutics Inc. Quote
Zacks Rank & Stocks to Consider
Acer currently carries a Zacks Rank #3 (Hold).
A couple of better-ranked stocks in the same industry are ANI Pharmaceuticals (ANIP - Free Report) and Annovis Bio (ANVS - Free Report) , each 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 forANI Pharmaceuticals’ earnings has gone up from $3.31 per share to $3.73 for 2023. The bottom-line estimate has increased from $4.32 to $4.35 for 2024 during the same time frame. Shares of the company have rallied 60.6% year to date.
ANIP’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 91.56%.
In the past 90 days, the Zacks Consensus Estimate for Annovis Bio has narrowed from a loss of $4.89 per share to a loss of $4.38 for 2023. The bottom-line estimate has narrowed from a loss of $3.18 to $2.77 for 2024 during the same time frame. Shares of the company have lost 7.7% year to date.
ANVS’ earnings beat estimates in three of the trailing four quarters and missed the mark in one, delivering an average surprise of 13.40%.