Idera Pharmaceuticals, Inc. (NASDAQ:IDRA) has entered into a merger pact with BioCryst Pharmaceuticals, Inc. (NASDAQ:BCRX) to develop and market medicines for the patients suffering from rare life threatening diseases. Mr. Robert Ingram, the current chairman of BioCryst will act as Chairman of the new entity whereas the Chief Executive Officer of Idera, Mr. Vincent Milano will act as a board member. Mr. John P. Stonehouse, the Chief Executive Officer of BioCryst, will act as a member of the board of Directors of the new entity. The new company will be named after completion of all the proceedings of the merger.
As per the terms of the deal, each share of the BioCryst will be valued at 0.50 share in the new entity and whereas each share of Idera will be valued at 0.20 share of the new company. The deal is worked out considering the 30 day average volume of the trading prices of each firm. Post merger, the stock holders of Idera will own 48.4% stake in the new company whereas the stock holders of BioCryst will hold 51.6% stake.
Mr. Vincent Vilano has said the deal will help to realize the dream of both the companies in providing medicines for the patients with life threatening diseases. Post merger, both the firms will utilize assets, experiences and talents and as a combined force will help to deliver the full range of medicines for rare life threatening diseases. The merger will ensure necessary funding and enhances operational efficiency to achieve the desired benefits.
The combined entity will have two phase two candidates and three phase three candidates in the late stage pipeline along with critical catalysts for the launch in 2018. The company also aims to address the early stage pipeline through clinical expertise and drug discovery capabilities. The deal puts both companies in a leadership position and explores business opportunities.
The Chief Executive Officer and President of BioCryst, Mr. Jon P. Stonehouse has said the merger of both the firms will help to form a differentiated and substantial biotech company to serve the patients with rare diseases. The new company will reach great heights utilizing the infrastructure, pipelines and financial capabilities. The deal will substantially enhance the shareholder value.