Innoviva enters into agreement to acquire La Jolla Pharmaceutical Company

Innoviva signed a definitive merger OK for the acquisition of all outstanding shares of La Jolla Pharmaceutical Company for $6.23 per share in cash or an enterprise value of nearly $149 million.

Pursuant to the agreement, Innoviva will acquire La Jolla through its wholly owned subsidiary.

La Jolla is focused on bringing to market innovative treatments that can improve outcomes in patients with life-threatening diseases.

The company’s lead product, Giapreza (angiotensin II) obtained Food and Drug Administration (FDA) approval in December 2017.

It is indicated to elevate blood pressure in adults with septic shock or other distributive shock.

Xerava (eravacycline), another FDA-approved active from La Jolla, is intended to treat complicated intra-abdominal infections (cIAI) in people 18 years of age and older.

The La Jolla takeover will strengthen Innoviva’s infectious disease portfolio, anchored by Innoviva’s recent acquisition of late-stage clinical biopharmaceutical company Entasis Therapeutics for $113 million.

Entasis discovers and develops new antibacterial products.

The boards of Innoviva and La Jolla have unanimously approved the acquisition.

Pavel Raifeld, CEO of Innoviva, said, “This acquisition represents a significant step forward in advancing our strategy to diversify operations and adds a highly complementary business franchise to our portfolio to accelerate long-term growth.

“We look forward to welcoming the La Jolla team to Innoviva and building on the success of Giapreza and Xerava.”

Subject to necessary closing conditions, the transaction is expected to close within 30 business days.

Following Closing, La Jolla will be the wholly owned subsidiary of Innoviva.

Larry Edwards, President and CEO of La Jolla Pharmaceutical Company, said, “We are pleased to announce the acquisition of La Jolla by Innoviva, which we believe offers our shareholders immediate value at an attractive price. .

“With Innoviva’s shared commitment to improving outcomes for patients with life-threatening diseases, Innoviva can continue to advance our mission and maximize the potential of our innovative therapies.”

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