Dogs and cats are people too. Okay, well maybe not, but they certainly are companions to millions of people that love them and don’t want them to suffer from pain. Neither does Nexvet (NASDAQ:NVET), a developer of monoclonal antibody therapies for companion animals. The Ireland-based veterinary biologic therapeutics company’s work has paid off for nearly every shareholder that bought in since May 2015, as Zoetis (NYSE:ZTS) today agreed to pay a premium to acquire the company.
Per the deal, which is being run through a Zoetis subsidiary, Nexvet will be acquired for $6.72 per share, or about $85 million in cash. That’s a 65.93% premium to the closing price of NVET shares on Wednesday.
Aside from a single intraday spike to $11.30 in September 2015, shares haven’t traded as high has $6.72 since May 21, 2015.
Nexvet doesn’t have any commercialized products. The main prize of the acquisition is PETization™, Nexvet’s platform designed to rapidly create monoclonal antibodies that are recognized as “self” or “native” by an animal’s immune system, a property Nexvet refers to as “100% species-specificity.”
Zoetis’ Dr. Alejandro Bernal, EVP and Group President of Strategy, Commercial and Business Development, calls the acquisition a “strategic fit” bringing and R&D organization that strengthens leadership position in chronic pain management for pets.
Nexvet’s board has approved the acquisition. The merger still requires approval by Nexvet’s shareholders and the Irish High Court. The transaction is expected to be completed in the second half of this year.
