Key points:
- Oyster Point Pharma (OYST) stock soared 39.5% on the takeover deal.
- Viatris Inc will acquire the company’s shares for $11.00 per share.
- Investors cheered the news, as evidenced by the rally in OYST stock.
The Oyster Point Pharma Inc (NASDAQ: OYST) stock soared 39.5% after signing a definitive agreement to be acquired by global healthcare company Viatris Inc. (Nasdaq: VTRS). The two firms agreed that Viatris would submit a tender offer to acquire Oyster Point Pharma’s issued shares for $11.00 each.
However, Oyster Point shares rallied above $11.00 since the deal includes an additional $2.00 payment to shareholders if the company meets specific performance targets by the end of its current financial year.
Also read: The Best Biotech Penny Stocks Under $5 To Buy Right Now.
Investors reacted positively to the news, given that the takeover deal values Oyster Pharma at a significant premium to its closing price over the past few months.
Oyster Point Pharma is a commercial-stage biopharmaceutical company focused on discovering, developing and commercializing first-in-class pharmaceutical therapies to treat ophthalmic diseases. The company launched its TYRVAYA nasal spray for treating the signs and symptoms of dry eye disease. It is the only such treatment approved by the FDA.
Michael Goettler, Viatris Inc.’s CEO, said: “Oyster Point Pharma brings to Viatris the strength of TYRVAYA Nasal Spray, the first and only FDA-approved nasal spray for dry eye in the U.S., an eye care-focused pipeline, and a very experienced team that possesses extensive knowledge of the ophthalmology space from a clinical, medical, regulatory and commercial perspective. Together, we are setting the foundation for the next global ophthalmology leader, accelerating efforts to address the unmet needs of patients with ophthalmic disease and the eye care professionals who treat them, and positioning Viatris for growth.”
Jeffrey Nau, PhD, MMS, Oyster Point Pharma’s CEO, said: “We are pleased to announce Viatris’ proposed acquisition of Oyster Point Pharma, recognizing the exciting opportunities ahead of us. Through our efforts to license our innovations globally, we recognized that Viatris would be an optimal partner with its Global Healthcare Gateway. With Viatris’ global capabilities and commitment to ophthalmology, we expect to be able to expand TYRVAYA’s impact on the dry eye landscape and accelerate our exciting pipeline.”
Today’s rally means that OYST stock’s future gains have been priced into its stock. Hence, I wouldn’t buy it now.
*This is not investment advice.
Oyster Point (OYST) share price.
The Oyster Point Pharma stock price soared 39.52% to trade at $11.65, rising from Friday’s closing price of $8.35.