BridgeBio To Buy All Remaining Stake In Eidos In $175 Mln Deal

(RTTNews) - BridgeBio Pharma, Inc. (BBIO), a company focused on genetic diseases,announced Monday a definitive agreement to acquire around 36.3% stake in Eidos Therapeutics, Inc. (EIDX), a company focused on transthyretin or TTR amyloidosis or ATTR, that it does not already own. The deal has a value of up to an aggregate maximum of $175 million of cash.

In pre-market activity on Nasdaq, Eidos shares were gaining 29 percent at $67. BridgeBio shares were up 1 percent.

Eidos stockholders will have the right to receive, at their election, either 1.85 shares of BridgeBio common stock or $73.26 in cash per Eidos share in the transaction.

At closing, Eidos stockholders will own between 16% and 18% of BridgeBio, depending on the amount of cash Eidos stockholders elect to receive.

The merger consideration represents a 55% premium to the volume weighted average price of Eidos shares over the 30 trading days ending on October 2 and a 41% premium to the closing trading price of Eidos common shares on October 2.

Both companies' Board of directors approved the deal. The transaction is expected to close in the first quarter of 2021, and is not subject to a financing contingency. BridgeBio intends to fund the cash consideration with available cash on hand.

Upon closing, Eidos will become a wholly owned subsidiary of BridgeBio and Eidos' stock will cease trading independently on The Nasdaq Global Select Market.

Eidos is developing acoramidis, a potential best-in-class TTR stabilizer, for patients with ATTR cardiomyopathy and polyneuropathy.

BridgeBio noted that Eidos and acoramidis will become the keystone in BridgeBio's growing cardiorenal portfolio.

BridgeBio expects to launch two drugs, if approved, in 2021 and is building the capabilities necessary to deliver genetic medicines to patients around the globe, which it can deploy for acoramidis.

BridgeBio said it anticipates several meaningful upcoming milestones across its portfolio over the next 12-18 months.