Innoviva Bolsters Its Infectious Disease, Hospital Portfolio With La Jolla Deal

Innoviva Bolsters Its Infectious Disease, Hospital Portfolio With La Jolla Deal
  • Innoviva Inc INVA has agreed to acquire La Jolla Pharmaceutical Company LJPC for $5.95 per share, representing a premium of approximately 70% to the 30-day volume-weighted average price.
  • Innoviva will also pay an incremental $0.28 per share for additional cash proceeds received in connection with the divestiture of a non-core asset. 
  • The deal consideration of $6.23 per share in cash has an implied enterprise value of approximately $149 million.
  • The FDA approved La Jolla's lead product, Giapreza in December 2017 to increase blood pressure in adults with septic or other distributive shocks. 
  • La Jolla's second asset, Xerava (eravacycline), was approved by the FDA in August 2018 for complicated intra-abdominal infections.
  • This acquisition strengthens Innoviva's portfolio in infectious diseases, anchored by the company's recent purchase of Entasis Therapeutics Holdings Inc.
  • Price Action: LJPC shares are up 81.4% at $6.15 premarket on the last check Monday.
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