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Ipsen to buy Clementia Pharmaceuticals in deal worth up to $1.3 billion

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The companies said the initial cash offer of $25 per share marked a premium of around 70 per cent to Clementia’s recent average share price, which has been around the $14.90 level

French healthcare company Ipsen has agreed to buy US peer Clementia Pharmaceuticals in a deal worth up to $1.31 billion, helping to boost Ipsen’s portfolio of products treating rare diseases.

Ipsen said the takeover would initially have a dilutive impact on its margins, due to the costs of forthcoming trials for Clementia products, but it hoped to recoup that later on.

It also added that it would buy all of Clementia’s shares for $25.00 each in cash upfront and offer a contingent value right (CVR) purchase of $6.00 per share, giving a total transaction value of up to $1.31 billion.

The companies said the initial cash offer of $25 per share marked a premium of around 70 per cent to Clementia’s recent average share price, which has been around the $14.90 level.

Clementia has a key product called ‘palovarotene’ that treats bone disorders, and it hopes to get full regulatory approval for this product in 2020.

“The acquisition of Clementia Pharmaceuticals accelerates the ongoing transformation of Ipsen as we are successfully executing on our external innovation strategy to identify and acquire innovative medicines to serve patients with unmet medical needs,” said Ipsen Chief Executive David Meek.

The Ipsen/Clementia deal marks the latest example of consolidation in the global healthcare industry, as companies pounce on smaller rivals with potentially lucrative products.

Earlier this month, Merck & Co said it would buy drug developer Immune Design Corp for nearly $300 million, while last year Sanofi bought Bioverativ and Ablynx in two blockbuster deals for Sanofi.

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