2 years Stemline Stock Doubles After Up to $677M Purchase Accord With Menarini of Italy     

Stemline stock more than doubled after the company agreed to be acquired for as much as $677 million by an Italian pharma and diagnostics company.

Shares of Stemline Therapeutics  (STML) – Get Report more than doubled after the developer of a treatment for a rare and hard-to-treat form of hematologic cancer agreed to be acquired for as much as $677 million cash by Menarini Group.

Stemline’s stock at last check was trading past $12 on news that the New York biopharma agreed to be acquired by Menarini, the privately held Florence, Italy, pharmaceutical and diagnostics firm with global operations. 

Stemline shares closed Friday at $4.75.

Under terms of the deal, Stemline holders are set to receive $12.50 a share, made up of an up-front payment of $11.50 cash and a non-tradable contingent value right.

Menarini will award the CVRs, each valued at $1 cash a share, after the first sale of Stemline’s oncology drug Elzonris, in one of the EU5 countries: Italy, Germany, Spain, the United Kingdom and France.

Elzonris, which treats blasmic plasmacytoid dendritic cell neoplasm in adults and in children two and older, has been in use in the U.S. for roughly 18 months. It was cleared by the U.S. Food and Drug Administration in December 2018.

The deal with Menarini will help ease the introduction of Stemline’s Elzonris for the disorder, a rare and aggressive form of hematologic cancer, in top European markets. 

It also provides the infrastructure to expand the use of the drug in the U.S. to target other diseases and hard-to-treat cancers, executives from the two firms stated in a news release.

The deal has been approved by the boards of Stemline and Menarini. 

The companies expect to close the deal in the second quarter, subject to conditions including tender by Stemline’s holders of more than half their shares as well as U.S. antitrust clearance, the companies said.

 

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