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Fortress Biotech (FBIO) Stock on the Rise Following Acquisition of Caelum by Alexion Biopharma

Fortress Biotech (FBIO) stock prices opened and closed the trading day on September 28th 2021 at a price per share of USD$3.40. Subsequent premarket fluctuations have seen the stock rise by 12.06%, bringing it up to USD$3.81.

Alexion Acquires Caelum

September 29th 2021 saw FBIO stock announce AstraZeneca’s Alexion has notified Caelum that it has exercised its option to acquire Caelum. The exercising of the option is pursuant to the Development, Option and Stock Purchase Agreement. The agreement is in place between Fortress, Caelum, Alexion, and other parties. Furthermore, the waiting period under the Hart-Scott-Rodino Antitrust Improvements Acts of 1976 has expired in regard to the Caelum acquisition. Expiration of the waiting period under the HSR act was required as one of the set conditions for the completion of the acquisition.

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Details of the Transaction

As per the terms of the DOSPA, the closing of the acquisition will result in the purchase of all outstanding shares of Caelum by Alexion. The agreed option exercise price has been set at roughly USD$150 million, with distributions to be made to all existing Caelum stockholders. The closing of the transaction will also provide for additional potential payments to Caelum stockholders up to a total of USD$350 million. These payments will be disbursed upon the achievement of regulatory and commercial milestones. FBIO stock is eligible to receive roughly 43% of the proceeds generated from the transaction.

FBIO Stock’s CAEL-101

The acquisition of Caelum will consolidate the strength of FBIO stock’s business model, resulting in positive development and monetization opportunities. The company is confident in the potential of CAEL-101 to be a best-in-class treatment for AL amyloidosis. Management looks forward to continuing the allocation of resources to progress CAEL-101 in the CARES Phase 3 clinical program under the leadership of the expert Alexion team.

Synergistic Collaboration

Caelum and Alexion Pharmaceuticals established a partnership in 2019 with an aim to develop CAEL-101 for patients with AL amyloidosis. The partners managed to achieve significant milestones together through its ongoing Phase 3 program. The combination with Caelum is a critical step for patients with AL amyloidosis in light of the scope of the combined resources of the partnership.

Future Outlook for FBIO Stock

FBIO stock is poised to capitalize on the opportunities presented to it as a result of the acquisition of Caelum by Alexion. The company hopes to use this development to continue its trajectory of success. Current and potential investors are hopeful that management will be able to leverage the resources at its disposal. This is hoped to facilitate significant and sustained increases in shareholder value.

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