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20 May, 2022 - 13:24 By Tony Quested

Acacia Pharma shareholders agree $104m acquisition by Eagle

Acacia Pharma shareholders have voted overwhelmingly to accept a $104 million rescue deal by New Jersey-based Eagle Pharmaceuticals, Inc. which saves the Cambridge company from the threat of insolvency.

The deal was approved in the High Court as the holders of 52.91 per cent of the Scheme Shares voted to approve the scheme of arrangement under Part 26 of the Companies Act 2006. Eagle gets the entire issued and to be issued share capital of the company.

Scott Tarriff, President and CEO of Eagle Pharmaceuticals, led the rescue deal after Acacia said it had to find an estimated $115m extra cash just to break even by early FY2025.

Despite the potential of its pipeline, the company said it had been hammered by Covid-triggered cancellations of surgery at hospitals – all potential Acia customers.

A news release formerly issued by Acacia reported: “Acacia met its formulary goals for both Barhemsys® and Byfavo® in FY2021 and continues to be encouraged that feedback for both products is indicative of significant future commercial potential.

“However, Acacia’s standalone financial condition has been negatively impacted by physical access limitations caused by the global COVID-19 pandemic and a significant latency of demand due to postponement of surgical procedures. 

“Accordingly, Acacia expects it would require a minimum of approximately $115m of additional cash to fund operations to break-even (based on projections assuming break-even by early FY2025).”

Eagle agreed to pay €94.7m ($103,978m) which includes €71.6m cash and the rest in Nasdaq shares.

The company believes it can leverage the power of both companies’ product portfolios by combining resources and talks of significant financial synergies. The deal should close soon, Eagle says.

The proposed transaction would provide Eagle with two currently marketed, acute care, hospital products with the potential to disrupt the marketplace – Acacia’s BARHEMSYS® and BYFAVO® – together potentially worth billions of dollars if well commercialised.

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