Cubist Becomes Dominant Antibiotic Seller With Optimer, Trius Buys
LEXINGTON, Mass. (TheStreet) -- Cubist Pharmaceuticals
Cubist already markets the antibiotic Cubicin but once the two deals closed, the company will control Optimer's currently approved antibiotic Dificid as well as Trius' late-stage antibiotic candidate tedizolid.
Recently, TheStreet contributor David Sobek explained the case for Cubist buying Optimer and/or Trius.
Cubist was already partners with Optimer, helping to market Dificid. Under terms of the deal, Cubist will pay $10.75 per share for each share of Optimer stock, plus a contingent value right redeemable for cash up to $5 per share. The deal is valued at $535 million excluding the CVR and up to $808 million if the full value of the CVR is realized.
Optimer closed Tuesday at $13.29, so technically speaking the deal is a "take under" unless the value of the CVR is realized.
The value of the Optimer CVR is tied to future sales of Dificid. Cubist will pay out $3 in cash for the Optimer CVR is Dificid sales reach $250 million; $4 for Dificid sales of $275 or more; and $5 for Dificid sales greater than $300 million.
Cubist is acquiring Trius for $13.50 per share in cash, or $707 million. The deal also includes a CVR redeemable for up to $2 per share if certain commercial milestones are reached. The total value of the transaction including the CVR is $818 million.
Trius shares closed Tuesday at $11.71, so Cubist's buyout price represents a 15 percent premium, minus the CVR.
-- Reported by Adam Feuerstein in Boston.