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Horizon Pharma #RTO of Vidara Therapeutics on NASDAQ

19 Sep Horizon Pharma #RTO of Vidara Therapeutics on NASDAQ

This news initially came yesterday and the deal was set to be closed as of today. The reverse takeover by Horizon Pharma of Vidara Therapeutics represents a logical combination of two biotherapeutic companies. Both firms hold proprietary rights to biotechnology drugs for the treatment of inflammation, osteoporosis and arthritis.

Horizon Pharma, Inc. (NASDAQ: HZNP) today announced that at its Special Meeting of Stockholders held today, proposals related to Horizon’s acquisition of Vidara Therapeutics International plc were approved by Horizon’s stockholders.

As previously announced, on March 18, 2014, Horizon Pharma, Inc. (“Horizon”), Vidara Therapeutics Holdings LLC, Vidara Therapeutics International plc, an Irish public limited company (“Vidara”), Hamilton Holdings (USA), Inc., an indirect wholly-owned subsidiary of Vidara (“U.S. HoldCo”), and Hamilton Merger Sub, Inc., a wholly-owned subsidiary of U.S. HoldCo (“Merger Sub”), entered into a Transaction Agreement and Plan of Merger (the “Merger Agreement”). The Merger Agreement provides that, upon the terms and subject to the conditions set forth in the Merger Agreement, Merger Sub will merge with and into Horizon, with Horizon continuing as the surviving corporation and as a wholly-owned, indirect subsidiary of Vidara (the “Merger”), with Vidara changing its name to Horizon Pharma Public Limited Company, or plc (“New Horizon”).

 

Biotech firms have always been good candidates for executing reverse mergers. In fact, it’s how the world’s richest doctor became the world’s richest doctor. The reasons biotech firms are actually good candidates for RTOs and reverse mergers is due in part to i) specific, proprietary and protected Intellectual Property ii) a large addressable market and iii) existing revenues. This particular deal seems to fit the mold for all three.

If you would like a good breakdown on the business itself, click here.

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Nate Nead
Nate Nead is a licensed investment banker and Principal at Deal Capital Partners, LLC which includes InvestmentBank.com and Crowdfund.co. Nate works works with middle-market corporate clients looking to acquire, sell, divest or raise growth capital from qualified buyers and institutional investors. He is the chief evangelist of the company's growing digital investment banking platform. Reliance Worldwide Investments, LLC a member of FINRA and SIPC and registered with the SEC and MSRB. Nate resides in Seattle, Washington.