Tesaro, Inc. (TSRO: NASDAQ)
Shares of Tesaro Inc. climbed 58% on Monday morning after the cancer drug maker agreed to be bought by British pharmaceutical firm Glaxosmithkline in a deal valued at $5.1 billion.
The terms of the deal include payment of $75 for each Tesaro share which represents a 63% premium to the closing price on Friday. Tesaro shares had ran down after the company reported disappointing results for the treatment of small cell lung cancer on November 9.
The purchase of Tesaro will help Glaxo in its effort of reviving its research and development strategy. In July, Glaxosmithkline announced that it planned on concentrating its research efforts towards the development of new remedies which act on the immune system of the body.
In its effort to refresh its research and development strategy, the pharmaceutical company brought on board Hal Barron to be its new Chief Scientific Officer. The acquisition of Tesaro is the first major acquisition since Barron joined Glaxo.
“The acquisition of Tesaro will strengthen our pharmaceuticals business by accelerating the build of our oncology pipeline and commercial footprint, along with providing access to new scientific capabilities,” said GSK chief executive Emma Walmsley.
“This combination will support our aim to deliver long-term sustainable growth and is consistent with our capital allocation priorities. We look forward to working with Tesaro’s talented team to bring valuable new medicines to patients,” added Walmsley.
Meanwhile Tesaro Chief Executive Lonnie Moulder had the following remarks on the acquisition, “the transaction marks the beginning of a new global partnership that will accelerate our oncology business and allow our mission of delivering transformative products to individuals living with cancer.”
The deal was announced on Monday morning before trading began and was unanimously approved by Tesaro’s board. Glaxosmithkline anticipates the deal to close during the first quarter of 2019. Over the past three months, Tesaro stock has climbed 43% while Glaxo shares have garnered 3.4% and the S&P 500 has dropped 4.9%.
Tesaro Inc., Company Profile
Tesaro, Inc., an oncology-focused biopharmaceutical company, identifies, acquires, develops, and commercializes cancer therapeutics and oncology supportive care products in the United States.
It offers ZEJULA (niraparib), an orally active and potent poly polymerase inhibitor for the maintenance treatment of women with recurrent epithelial ovarian, fallopian tube, or primary peritoneal cancer; and VARUBI (rolapitant), a neurokinin-1, or NK-1, receptor antagonist for the prevention of chemotherapy induced nausea and vomiting.
The company also develops Niraparib for the treatment of various tumors. In addition, it is developing immunotherapy antibody product candidates which are in phase 1 clinical trial. Tesaro is based in Waltham, Massachusetts. – Yahoo Finance