Allergan paying $639 million for Vitae Pharmaceuticals

Psoriasis and atopic dermatitis affect tens of millions of patients in the USA alone, so if both drugs can find their way through the regulator approval process, they will be competing in a markets worth billions in annual sales.

Over 27.9 million shares of Vitae have traded so far today vs. the 30-day average volume of about 227,000 shares.

The Ireland-based company said it would acquire Pennsylvania-based Vitae for $21 a share, a 159 percent upside from its Tuesday close of $8.10 a share. Monsanto’s Board of Directors, Bayer’s Board of Management and Bayer’s Supervisory Board have unanimously approved the agreement.

Brent Saunders, CEO and President of Allergan said, “The acquisition of Vitae is a strategic investment for Allergan that adds strength and depth to our innovative medical dermatology franchise”.

Vitae CEO Jeff Hatfield said Allergan has “a long track record” in developing and commercializing innovative dermatologic treatments.

Given the massive premium Allergan paid to wrap up this transaction, I think the chances of a competing bid coming through is quite unlikely.

A total of 5 equity analysts have released a report on the stock. The restaurant growth was especially good news since it marked an improvement over the prior quarter’s 2.3% uptick.

Yet Cracker Barrel didn’t completely dodge the slowdown that has pinched peers in the casual-dining industry.

This story will be updated when more information becomes available.

To that end, Cracker Barrel sees profitability slipping from this year’s 10.4% down to 9.8% at the midpoint of guidance for fiscal 2017.

Bayer has confirmed sales and cost synergies assumptions in due diligence and expects annual EBITDA contributions from total synergies of approximately United States dollars 1.5 billion after year three, plus additional synergies from integrated solutions in future years.

Do you think the proposed buyout price is too low?

Brian Feroldi has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.