Israeli biomedical company Prolor, which develops technology to extend the active life of therapeutic hormones, was acquired by Opko for $480M
International pharmaceutical and diagnostic company, Opko Health, announced today that it has reached a purchase agreement with Prolor Biotech Israel for $480M. The terms of the merger call for Prolor shareholders to receive 0.9951 shares of Opko stock, valued at $7.03/share, for every share of Prolor stock. The result is a $480M price tag with an individual share value of Prolor stock coming in at $7.00 even.
The total transaction value amounts to a 20% premium on Prolor’s valuation as assessed at the end of the previous business day where it closed at $369.80M as listed in NYSEAMEX. According to the announcement, the companies expect to finalize the deal in the second half of 2013.
Increases the active life of proteins in the body
PROLOR CTP technology is the developer of a long-lasting human growth hormone called hGH-CTP, which extends the effectual timeframe in which proteins remain active within the body. Practically speaking, this reduces the required frequency for hormone dose injections, from one injection a day to one injection a week.
PROLOR has successfully completed four clinical trials, including a Phase II trial in adults with growth hormone deficiency (GHD), while a phase II trial for children with GHD is ongoing. A phase III trial for adults is scheduled to begin later this year. Prolor is also involved in preclinical development of long-lasting clotting solutions to be used in treating hemophilia. Prolor’s success comes from the attachment of CTP, a proprietary technology that extends the active life of therapeutic proteins once attached.
Shai Novik, President OF PROLOR said: “We believe this transaction will enhance the value we have already created in PROLOR, providing our shareholders economic conditions that are attractive, while we continue to contribute to the success of the merging company. We believe that Opko is committed to innovation and growth. Their diverse portfolio in diagnostic and therapeutic products along with their growing international presence, and their experienced investment and management teams, all combine to make this an ideal transaction for PROLOR. ”
Additional purchases on the horizon
Opko focuses on drugs, devices and medical diagnostics around the world and has a special interest in developing markets. The company works on projects for diagnosing diseases such as Parkinson’s, Alzheimer’s, cancer and various other chronic maladies. Opko’s market value is estimated at $2.2B and is owned by Phillip Frost, an American Jew who, among other things, is the chairman of Teva pharmaceuticals, as well as its largest private investor.
In 2006, Teva bought Ivax at a value of 7.4 billion dollars. Frost holds 1.6 percent of the voting rights in the company. Since Frost founded Opko it has made several strategic acquisitions of biomed companies, including Ourlabs, Faramdiet, ALS, Claros Diagnostics and Israeli FineTech. In addition, Frost already held a 19.8% stake in PROLOR before its purchase by Opko.