Today’s chart-topper is Akouos Inc. (NASD: AKUS), which jumped 89.16% to trade at $13.26 at the most recent check in premarket trading before a takeover agreement.
Who has been taking over AKUS?
Akouos (AKUS) and Eli Lilly have announced a formal agreement for Lilly to buy Akouos.
- In order to meet the requirements of people with debilitating hearing loss throughout the world, AKUS has combined expertise in otology, inner ear medicine delivery, and gene therapy.
- The leading product candidate for Akouos, AK-OTOF, uses gene therapy to address hearing loss brought on by mutations in the otoferlin gene (OTOF).
- Other pipeline programs target a variety of inner ear disorders and include AK-CLRN1 for Usher Type 3A, an autosomal recessive condition marked by progressive loss of both hearing and vision, GJB2 (which encodes connexin 26) for a typical type of monogenic deafness and hearing loss, and AK-antiVEGF for the treatment of vestibular schwannoma.
- In accordance with the agreement, Lilly will buy all of the AKUS shares still in circulation for $12.50 in cash plus one contingent value right (CVR) of up to $3.00 per share. The boards of directors for both businesses have given their approval to the agreement.
Conditions of the Deal:
Lilly will launch a tender offer to buy all of the outstanding shares of Akouos for $12.50 per share in cash (a total of around $487 million), which is due upon close. A non-tradeable contingent value right (“CVR”) that entitles the holder to an extra $3.00 in cash was also included in the agreement, bringing the total consideration paid to as much as $15.50 per share in cash (interest-free) and bringing the aggregate amount to as much as $610 million.
How will the deal affect AKUS?
When compared to the 30-day volume-weighted average trading price of AKUS common stock ending on October 17, 2022, the final trading day preceding the announcement of the deal, the acquisition price payable at closure reflects a premium of around 121%. The Akouos Board of Directors unanimously advises that stockholders participate in the tender offer by submitting their shares. A few Akouos (AKUS) investors have also consented to tender their shares in the tender offer, beneficially holding around 26% of AKUS’s outstanding common stock.
