Theratechnologies stock soars after $254 million acquisition deal

Investing.com -- Theratechnologies Inc. (NASDAQ:THTX) stock surged 34% after the commercial-stage biopharmaceutical company announced it has entered into a binding arrangement agreement to be acquired by CB Biotechnology, an affiliate of Future Pak, for up to $4.20 per share.

The deal includes an upfront cash payment of $3.01 per share plus one contingent value right (CVR) per share that could provide additional payments of up to $1.19 if certain milestones are achieved. The total potential consideration values the transaction at $254 million.

The cash portion alone represents a 126% premium to Theratechnologies’ closing price on April 10, the day before Future Pak’s initial non-binding proposal was announced. Including the maximum potential CVR payment, the premium reaches 216%.

"This transaction is the result of a thorough and deliberate sale process aimed at maximizing value for our shareholders," said Frank A. Holler, Chair of the Board of Directors of Theratechnologies. "Future Pak’s interest in acquiring Theratechnologies represents a vote of confidence in the company we’ve built, recognizing our achievements in bringing innovative medicines to patients and the outstanding contributions of our dedicated employees."

The CVR payments are tied to performance milestones related to the company’s EGRIFTA franchise and Trogarzo franchises over the next 36 months following the transaction’s closing.

Future Pak, a privately held contract manufacturer, packager and distributor of pharmaceutical and nutraceutical products, will fund the acquisition through a combination of debt financing and cash on hand.

The transaction, which has been unanimously approved by Theratechnologies’ Board of Directors, is expected to close during the company’s fourth quarter ending November 30, 2025, subject to shareholder approval and other customary closing conditions.

Following completion, Theratechnologies will become a privately held company and will delist from both the Toronto Stock Exchange and Nasdaq.

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