Vertex Is Paying a 102% Premium to Acquire Crinetics for $10 Billion. Here's Whether the Deal Is Worth It.
This buy gives Vertex both a recently-commercialized drug, and a very strong lead candidate.
Overview
In the latest big-ticket deal in the pharmaceutical industry, Vertex Pharmaceuticals (NASDAQ:VRTX) and Crinetics Pharmaceuticals (NASDAQ:CRNX) announced in a joint press release that Vertex is acquiring Crinetics. This won’t come cheap, to put it mildly; it’s a premium-priced deal that will cost billions of dollars. Here’s a look at whether that’s likely to be capital well spent.
Vertex is paying $85 per share to acquire Crinetics, to be paid entirely in cash. This values the latter pharmaceutical company at approximately $10 billion, or roughly $8.8 billion when accounting for the cash and short-term investments Crinetics has on hand. As for the per-share price, $85 is slightly more than double the level at which Crinetics closed on Monday.
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Originally published at www.fool.com.