Spark Therapeutics to be acquired by Roche at $113.47 UP $61.91 

We congratulate our subscribers who kept Spark Therapeutics (ONCE) in spite of the stock’s kind of paralysis for no serious reasons.

Spark, a fully integrated, commercial gene therapy company, announced today that it has entered into a definitive merger agreement with Roche (RHHBY). The firm is to fully acquire Spark Therapeutics at a price of $114.50 per share, in an all-cash transaction. This move represents  a total equity value of approximately $4.8 billion on a fully diluted basis, inclusive of approximately $500 million of projected net cash expected at close. The per share price represents a premium of 122% to Spark’s closing price on February 22, 2019.

The Boards of Spark and Roche have both unanimously approved the merger agreement. 

The stock price more than doubled since Prohost picked it. Yet another intelligent guess by Prohost.

ExecutivesComments from Spark & Roche

Jeffrey D. Marrazzo, Chief Executive Officer of Spark Therapeutics, said, “As the only biotechnology company that has successfully commercialized a gene therapy for a genetic disease in the U.S., we have built unmatched competencies in the discovery, development and delivery of genetic medicines. But the needs of patients and families living with genetic diseases are immediate and vast. With its worldwide reach and extensive resources, Roche will help us accelerate the development of more gene therapies for more patients for more diseases and further expedite our vision of a world where no life is limited by genetic disease.” 

Severin Schwan, Chief Executive Officer of Roche, said, “Spark Therapeutics’ proven expertise in the entire gene therapy value chain may offer important new opportunities for the treatment of serious diseases. A program could become a new therapeutic option for people living with this disease. We are also excited to continue the investments in Spark’s broad product portfolio and commitment to Philadelphia as a center of excellence.”

Spark & Roche Terms of the Agreement

Under the terms of the merger agreement Roche will promptly commence a tender offer to acquire all outstanding shares of Spark’s common at a price of $114.50 per share, in cash. Spark will file a recommendation statement containing the unanimous recommendation of the Spark board that Spark shareholders tender their shares to Roche.

The closing of the tender offer will be subject to a majority of Spark Therapeutics’ outstanding shares being tendered. In addition, the transaction is subject to the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and other customary conditions.

Following completion of the tender offer, Roche will acquire all remaining shares at the same price of $114.50 per share through a second step merger. The closing of the transaction is expected to take place in the second quarter of 2019.

Centerview Partners is acting as financial advisor to Spark Therapeutics and Goodwin Procter LLP is acting as legal counsel to Spark Therapeutics. Cowen also acted as a financial advisor in this transaction to Spark Therapeutics. Citi is acting as financial advisor to Roche and Davis Polk & Wardwell LLP is acting as legal counsel to Roche.

Spark Therapeutics will continue its operations in Philadelphia as an independent company within The Roche Group.

About Spark Therapeutics

Spark Therapeutics challenges the inevitability of genetic diseases, including blindness, hemophilia, lysosomal storage disorders and neuro-degenerative diseases. We have successfully applied our technology in the first gene therapy approved in both the U.S. and the EU for a genetic disease. We currently have four programs in clinical trials, including product candidates that have shown promising early results in patients with hemophilia. At Spark we see the path to a world where no life is limited by genetic disease.

About Roche 

Roche is the world’s largest biotech company. With truly differentiated medicines in: oncology, immunology, infectious diseases, ophthalmology and diseases of the central nervous system. Roche is also the world leader in in vitro diagnostics and tissue-based cancer diagnostics; a front runner in diabetes management.

Founded in 1896 Roche continues to search for better ways to prevent, diagnose and treat diseases as well as make a sustainable contribution to society. The company aims at improving patient access to medical innovations by working with all relevant stakeholders. Thirty medicines developed by Roche are included in the World Health Organization Model Lists of Essential Medicines. Among them: life-saving antibiotics, antimalarials and cancer medicines. Moreover, for the tenth consecutive year, Roche has been recognized as the most sustainable company in the Pharmaceuticals Industry by the Dow Jones Sustainability Indices (DJSI).

The Roche Group, headquartered in Basel, Switzerland, is active in over 100 countries. In 2018 it employed about 94,000 people worldwide. Additionally, in 2018, Roche invested CHF 11 billion in R&D and posted sales of CHF 56.8 billion. In the United States, Genentech is a wholly owned member of The Roche GroupRoche is the majority shareholder in Chugai PharmaceuticalJapan. For more information, please visit www.roche.com.

Prohost Observations

Great news for Spark, Roche and Prohost.

We picked Spark (ONCE) on October 16, 2015 at $52.80. The stock is trading now at $113.47  UP $61.91; that’s 120.07%.

We congratulate our readers who were not affected by the negative articles about this firm and kept the stock. The Prohost target for 2019 was $100. Roche paid $113.47. 

Congratulations. 

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