Amicus Therapeutics, Inc. (NASDAQ:FOLD) has announced that it would be acquiring Scioderm Inc. a company focused on developing therapies to treat rare diseases. Scioderm, currently has its lead drug candidate for Epidermolysis Bullosa in phase-3 of clinical trials. Furthermore, the acquisition would help Amicus achieve its mission of becoming one of the leading biotechnology companies for the treatment of rare diseases.
Amicus Therapeutics has been experiencing an upward trend, since the beginning of this year. The company shares have shown great improvement as compared to the overall NASDAQ Biotechnology Index. The NBI registered a rise of just 18% since the start of this year, as compared to the 119% rise by FOLD. However, since this raise has brought the company shares to trade at their 52-week highs, analysts believe that the stock would soon start moving downwards. Fortunately for the shareholders, the recent move to acquire Scioderm is being viewed in the best interests of both companies.
As a result of the deal, Amicus would get a lead candidate for the treatment of EB, which is already near completion. Scioderm, on the other hand, would benefit from the immense expertise of the Amicus team, to help push its drugs through FDA approvals and regulations. Furthermore, the Amicus team is better equipped to manage a global launch of this product. Since this would be the first therapy targeting EB, analysts expect the global market to be valued at a total of $1 billion.
As a result of the transaction, the CEO of Scioderm, Dr. Robert Ryan, would be added to the senior leadership of Amicus. The deal has been priced at $229 million, of which $125 million will be paid in cash to the shareholders of Scioderm. The remaining amount will be paid through issuance of 7 million new shares of FOLD.
Amicus Therapeutics, Inc. (NASDAQ:FOLD) experienced a decline of 5.92% during the September 16 session, to close at a share price of $17.15, after trading a total volume of 0.00.