U.S. biopharmaceutical company Hyperion Therapeutics said on Thursday it agreed to purchase Israel's Andromeda Biotech, a developer of a new diabetes drug, in a deal that could be worth close to $600 million. Andromeda is a subsidiary of Clal Biotechnology Industries . At the closing, expected this quarter, Hyperion will pay $12.5 million in cash and nearly 313,000 shares of Hyperion stock - valued at $7.85 million, it said.Hyperion would make milestone payments of $120 million, the first of which would not be made until acceptance of the first marketing application filing for review in either the United States or Europe.Andromeda is developing DiaPep277, a treatment for Type I diabetes. DiaPep277 is currently undergoing a second advanced Phase III clinical study, with results expected in the first quarter of 2015.Once the drug hits annual global sales of $450 million, Hyperion would pay up to $430 million in commercial milestones. It would also pay as much as 17 percent in contingent sales for annual worldwide sales above $1.2 billion, Hyperion said.
Hyperion Therapeutics, Inc. (Hyperion)is a development-stage biopharmaceutical company focused on the development and commercialization of novel therapeutics to treat disorders in the areas of orphan diseases and hepatology. Shares of HPTX fell by 2.55% or $-0.67/share to $25.61. In the past year, the shares have traded as low as $15.92 and as high as $32.98. On average, 97864 shares of HPTX exchange hands on a given day and today's volume is recorded at 57326.
Source
