Regulus Therapeutics Stock Skyrockets On $1.7B Acquisition Offer From Novartis

Shares of biopharmaceutical company Regulus Therapeutics Inc. (RGLS) shot up 138% at the opening bell on Wednesday after Swiss drugmaker Novartis agreed to acquire the firm for up to $1.7 billion.

As per the terms of the deal, Novartis, through a subsidiary, will initiate a tender offer to acquire all of Regulus' outstanding shares for an initial price of $7.00 per share or $800 million. The initial per-share price represents a premium of 108% to Regulus' closing price on April 29.

Regulus shareholders will also receive a contingent value right (CVR) of $7.00 per share if its lead product candidate, farabursen, receives regulatory approval.

The total consideration, including the CVR, would be approximately $1.7 billion.

Regulus’ farabursen is an investigational microRNA inhibitor designed to reduce the growth of cysts and kidney size, as well as delay progression of disease severity in a severe kidney disease called autosomal dominant polycystic kidney disease (ADPKD).

Novartis President Shreeram Aradhye noted that there are limited treatment options currently available for ADPKD.

“The team at Regulus has done meaningful foundational work with farabursen, and we look forward to investigating its potential further as we aim to bring a better treatment option to patients in need," he said.

The transaction is expected to be completed in the second half of 2025. Until then, Regulus will continue to operate as a separate and independent company. Following the completion of the deal, Regulus will become an indirect wholly-owned subsidiary of Novartis.

RGLS stock is up by 397% so far this year and by 237% over the past 12 months.

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