By Sam Boughedda
Investing.com — Shares of Zogenix Inc (NASDAQ:ZGNX) surged over 67% Wednesday after UCB SA (BR:UCB) said it has agreed to acquire the epilepsy drug maker for about $1.9 billion.
UCB will pay $26 per share in cash. They will also pay a further cash payment of $2 per share if Zogenix's FINTEPLA drug is approved as an orphan medicine to treat Lennox-Gastaut syndrome (LGS) by the end of 2023.
The initial payment represents a 72% premium to Zogenix shares based on the 30-day volume-weighted average closing stock price of Zogenix before the deal.
LGS is a disease that causes seizures. Fintepla has been approved by the FDA and the EMA and is under regulatory review in Japan, to treat seizures associated with Dravet syndrome in patients two years of age and older.
"We are delighted to announce UCB's proposed acquisition of Zogenix, recognizing the value of our lead medicine," said Stephen Farr, president and CEO of Zogenix.
UCB said it will finance the deal for Zogenix through a combination of available cash and a loan.
Shares of UCB are currently up 3% Wednesday.