Shares of Swedish biotech Calliditas Therapeutics (NASDAQ:CALT) shot up by nearly 70% in the premarket session today after Japanese conglomerate Asahi Kasei (OTC:AHKSF) offered to acquire the company for $1.1 billion.
The Deal
Asahi offered to acquire Calliditas at SEK 208 per share. It is also launching a concurrent offer to acquire all of CALT’s American Depository Shares at SEK 416 per ADS (each ADS of CALT represents two of its shares). Notably, the offer represents a mega 83% premium over Calliditas’ 30-day VWAP (volume weighted average price).
In response, CALT’s board has unanimously recommended that the company’s shareholders accept Asahi’s offer. Additionally, shareholders controlling a nearly 44.65% stake in CALT have already agreed to accept the offer.
Could Prove to be a Win-Win
Importantly, joining hands with Asahi could help Calliditas accelerate its growth trajectory and boost its product pipeline. CALT’s product pipeline is targeted at multiple orphan indications. Orphan indications refer to rare medical conditions that affect a small percentage of the population, for which there is limited financial incentive for pharmaceutical companies to develop treatments. The move could also help Asahi, largely known for specialized chemicals, entrench itself as a global pharmaceutical major.
Is Calliditas Therapeutics a Buy, Sell, or a Hold?
Today’s price gains come on top of a nearly 19% climb in Calliditas’ share price over the past six months. Overall, the Street has a Strong Buy consensus rating on the stock, alongside an average CALT price target of $43.40.
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