Ra Pharmaceuticals Inc. is Acquired for $2.1 Billion

Shares of Ra Pharma were exploding on Thursday after it was announced that the company would be acquired by Belgium-based UCB for $2.1 billion.

The transaction would immediately double the market value of the Cambridged-based biotech which is in late stage trials of a drug called zilucoplan that treats a rare muscle disease called generalized myasthenia gravis, or gMG. According to Ra, “up to 60,000” people in the U.S. have the chronic, autoimmune disease, which causes increasing muscle weakness.

The boards of both companies have unanimously approved the transaction but shareholders still need to approve it.

As part of the deal, UCB has agreed to pay $48 per share share, about $2.5 billion for the company, but says that “represents a transaction value of approximately $2.1 billion, net of Ra Pharma cash.” Ra reported having $190 million in total assets as of June 30th.

The deal represents a 93 percent premium to Ra’s value before the deal, UCB said.

UCB said it would keep the Cambridge offices of Ra, but would “further strengthen its presence in the U.S., in particular the innovation hub in the Boston area.”

Jean-Christophe Tellier, CEO UCB said: “Ra Pharma is an excellent strategic fit addressing multiple areas of UCB’s patient value growth strategy. Upon closing, the acquisition will add to our strong internal growth opportunities – six potential product launches in the next five years, strengthening our neurology and immunology franchises with late and early-state pipeline projects. In addition, the combination will provide us with the opportunity to become a leader in treating people living with myasthenia gravis, an auto-antibody mediated neurological orphan disease with high unmet medical need, as well as adding a highly productive technology platform to our innovation engine.”

The deal is expected to close by the end of March 2020.

Disclaimer: We have no position in Ra Pharma (Nasdaq: RARX) and have not been compensated for this article.