By Katherine Hamilton
Novartis has agreed to acquire Regulus Therapeutics for a total equity value of up to roughly $1.7 billion.
With the merger, the Swiss pharmaceutical company aims to bring to more patients farabursen, a kidney-disease treatment developed by Regulus, the companies said Wednesday.
Shares of Regulus, a San Diego biopharmaceutical company specializing in medicines targeting microRNAs, rocketed 135% to $7.90 in premarket trading Wednesday. The stock had already more than doubled in value this year as of Tuesday's close.
The deal is set to close in the second half of the year, the companies said.
Novartis will initiate a tender offer to acquire all of Regulus's shares for $7 apiece, plus a non-tradeable contingent value right for another $7 a share that will be payable once Regulus meets a certain milestone for getting regulatory approval for farabursen.
Once the offer is complete, a subsidiary of Novartis will be merged with Regulus and any remaining Regulus shares will be cancelled and converted into the right to receive the same merger consideration per share payable in the tender offer.
Write to Katherine Hamilton at katherine.hamilton@wsj.com
(END) Dow Jones Newswires
April 30, 2025 07:39 ET (11:39 GMT)
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