Replies to post #221197 on Biotech Values

[DewDiligence]

PRTK +70%/AH on $59M+ BARDA contract for anthrax vaccine:

https://finance.yahoo.com/news/paratek-awarded-barda-project-bioshield-221226301.html

Paratek Pharmaceuticals…announced today that the Department of Health and Human Services (HHS), Office of the Assistant Secretary for Preparedness and Response (ASPR), and Biomedical Advanced Research and Development Authority (BARDA) has awarded the Company a 5-year contract, with an option to extend to 10-years, to support the development of Paratek’s NUZYRA (omadacycline) for the treatment of pulmonary anthrax, FDA post-marketing requirements (PMR) associated with the initial NUZYRA approval, and the option to procure up to 10,000 treatment courses of NUZYRA for the Strategic National Stockpile (SNS) for use against potential biothreats.

Under the terms of the agreement, BARDA will award initial funding of approximately $59 million for the development of NUZYRA for the treatment of pulmonary anthrax and the purchase of an initial 2,500 treatment courses of NUZYRA to add to the current SNS.

The contract provides for additional potential time-based funding including: approximately $77 million for existing FDA PMR commitments scheduled to begin in April 2020 and approximately $20 million for manufacturing-related requirements scheduled to begin in June 2020. The remaining staged, milestone-based funding includes the potential for approximately $13 million to support the development of NUZYRA for the prophylaxis of anthrax and a maximum of approximately $115 million to provide for three additional purchases of NUZYRA for the SNS, each of which will be triggered upon development milestones related to the anthrax treatment development program.

Nuzyra is already FDA-approved for treatment of CAPB (#msg-143947573, first link).

[DewDiligence]

PRTK taken private @$2.15/sh cash +CVR:

https://www.globenewswire.com/news-release/2023/06/06/2682916/33636/en/Paratek-Pharmaceuticals-to-be-Acquired-by-Gurnet-Point-Capital-and-Novo-Holdings.html

Under the terms of the merger agreement, Gurnet Point, a leading healthcare investment firm, and Novo Holdings, a holding and investment company responsible for managing the assets and wealth of the Novo Nordisk Foundation, will acquire all outstanding shares of Paratek for $2.15 per share in cash, plus a CVR of $0.85 per share payable upon the achievement of $320 million in U.S. NUZYRA net sales…in any calendar year ending on or prior to December 31, 2026.

The buyout price (excluding the CVR) is a 41% premium to PRTK’s “unaffected” closing price on 5/31/23. The nominal deal value (excluding the CVR) is $330M.