Zevra Therapeutics has concluded its takeover of complete outstanding shares of Acer Therapeutics to form a rare disease company in a $91m deal.
The parties signed a definitive agreement for the merger in August 2023.
2.96 million shares of Zevra stock and contingent value rights (CVRs) were issued for Acer shares.
The CVRs represent the right to receive $76m to be paid to SWK Funding, Acer’s warrant holder, on meeting specific regulatory and net product sales milestones.
Zevra also purchased Acer’s senior secured debt for $28.5m.
Zevra has obtained access to Acer's rare disease assets Olpruva, which is approved by the Food and Drug Administration (FDA) to treat specific urea cycle disorders, and Edsivo, currently being analysed in Phase III studies for vascular Ehlers-Danlos syndrome.
The takeover will enhance the commercial and development expertise of Zevra through the addition of crucial personnel from Acer as well as its commercial systems.
Zevra Therapeutics president and CEO Neil McFarlane stated: “The acquisition marks an exciting milestone for Zevra as we advance our mission to deliver therapies to the rare disease community.
“With our combined resources, expanded portfolio and expert capabilities, we have the opportunity to make a tremendous impact on the lives of people with serious rare diseases. We are excited about the opportunities ahead for patients and remain focused on executing our strategic priorities to create long-term shareholder value.”
