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- Innoviva, Inc. (INVA), a diversified holding company, has agreed to acquire the commercial-stage biotech La Jolla Pharmaceutical Company (NASDAQ:LJPC) for $6.23 per share in cash, implying an enterprise value of ~$149M, the companies announced on Monday.
- Per the terms of the merger agreement, Innoviva (INVA) intends to pay $5.95 per share for La Jolla (LJPC) and $0.28 per share for additional cash proceeds from the divestiture of a non-core asset.
- The initial purchase price of $5.95 indicates a premium of 70% to the 30-day volume-weighted average price (VWAP).
- Innoviva (INVA), through one of its subsidiaries, will start a tender offer in this regard on or before July 25, 2022. The deal is expected to close within 30 business days.
- In 2017, the FDA approved La Jolla’s (LJPC) lead product to increase blood pressure in adults with septic or other distributive shock. A year later, the agency greenlighted its second product XERAVA as a treatment for adults with complicated intra-abdominal infections.
- The company reported $43.5M of net product sales in 2021 with ~30% YoY growth.