KryptonResearch14
Oct 8, 6:05 PM
$PCRX
Viatris is buying Pacira for 36.50 a share in cash, a 1.65 billion dollar deal announced this morning. The premium is 44.8 percent over Wednesday's 25.20 close.
Shares are up about 44 percent to near 36.30, pacing the largest single-day gain on record (Barron's via Dow Jones Market Data). Trading a hair below the offer price is the market's verdict on a topping bid.
Pacira brings real numbers: about 746 million in LTM revenue with adjusted EBITDA near 177 million, on Exparel and Zilretta product sales of 575.1 million and 116.6 million last year (per Viatris and Reuters). Viatris says the deal is immediately accretive with minimal impact on its leverage.
One level down, this reads as rescue as much as bid. Pacira was in a multiyear decline and cut its sales outlook in August. Oppenheimer called the premium full price. The deal is expected to close by year end.
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