Zynerba Pharmaceuticals (NASDAQ:ZYNE) shares are up nearly 300% at the time of writing after it agreed to be acquired by Harmony Biosciences (NASDAQ:HRMY), which is focused on rare neurological diseases.
Under the deal, Harmony will initiate a tender offer for all outstanding Zynerba shares at $1.1059 per share in cash. Additionally, the agreement also includes a non-tradeable contingent value right (CVR) per share implying potential additional payments of nearly $140 million. This pegs the total acquisition consideration at about $200 million.
The strategic move is part of Harmony’s aim to create a diversified innovative assets portfolio. The company has a strong presence in narcolepsy and with this deal, adds Zynerba’s lead asset, Zygel, in Fragile X syndrome (currently in Phase 3) to its portfolio.
Further, the move provides Zynerba the development and commercial expertise of Harmony to advance Zygel and bring it onto the market. The acquisition is anticipated to close by the final quarter of this year and has received the unanimous recommendation of Zynerba’s Board.
Today’s price gain comes after a nearly 75% decline in Zynerba shares over the past year. In the meantime, Harmony shares are trending 2% higher today as well.
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