Triton Investment Management Limited. has settled to purchase Clinigen Group Plc., a U.K. pharmaceutical company that was approached by activist Elliott Investment Management early this year. Clinigen investor will get about 883 pence per share in cash, which amounts to 1.2 billion pounds ($1.6 billion). According to a statement released on Wednesday, this represents a premium of 41 percent above the price before the agreement became public. Also, the payment declared earlier for the final dividend will be paid.
Clinigen’s stock jumped as much as 11 percent to 910p in London on Wednesday, trading well above listing price, indicating that the market expects a competing investor to emerge. According to a report by Sky News at the time, Elliott, one of the world’s most feared campaigners, disclosed a 5% ownership in Clinigen and called for the business to be broken up and its medicines section to be sold. As per Bloomberg data, Elliott owns over 8% of the company, making it the biggest stakeholder.
Clinigen improves the accessibility of commercial pharmaceuticals niche by gaining the rights to them. It also supports entities with gaining treatments that are not permitted in their home countries. A distinct branch of the organization assists drug manufacturers for leading clinical trials with subjects such as distribution, packaging, and medicine sourcing. The establishment has been viewed for long term as a key takeover target by private equity groups. Clinigen’s stock plummeted in June when the company issued lower-than-expected profits forecasts as a result of clinical trial delays and cancer treatment disruptions.
Triton is an investment company based in Europe that has a track record of operating in healthcare, notably pharmaceutical industry. It stated that it has been watching Clinigen for a long time and that the firm “plays a vital role in supplying medicines to patients with unmet needs around the world.”
Business analysts say the bid price is fair, although there may be some debate about numerous other options for the cancer drug Proleukin.”The moment of the proposal appears opportunistic,” Max Herrmann stated, an analyst at Stifel. “The present offer does not reflect any value on the prospective rejuvenation of Proleukin.”