Intercept Pharmaceuticals’ stock set to soar after Alfasigma buyout deal for an 82% premium

Shares of Intercept Pharmaceuticals Inc.
ICPT,
+79.03%
were set to soar Tuesday, after the biopharmaceutical company announced an agreement to be acquired by Italy’s Alfasigma S.p.A in a deal that values Intercept shares at an 82% premium. Intercept’s stock has been halted for news until 8:30 a.m. Eastern. Under terms of the deal, Alfasigma will pay $19 in cash for each Intercept share outstanding, compared with Monday’s closing price of $10.44. With 41.8 million shares outstanding as of June 30, the per-share bid values Intercept at about $793.9 million. The deal is expected to close by the end of 2023. “Today’s proposed acquisition is aligned with our strategy to build presence in the U.S. market, with a focus in our core gastroenterological area while adding another important asset to our innovation pipeline,” said Alfasigma Chairman Stefano Golinelli. “We are pleased to announce this transaction with Alfasigma, which delivers significant value to shareholders,” said Intercept Chief Executive Jerry Durso. Intercept’s stock has shed 15.6% year to date, while the iShares Biotechnology ETF
IBB,
+0.73%
has declined 6.9% and the S&P 500
SPX,
-1.01%
has gained 13%.