Orchard Therapeutics ADSs Soar Premarket on Takeover by Kyowa Kirin
By Colin Kellaher
American depositary shares of Orchard Therapeutics took flight in premarket trading Thursday after the gene-therapy company agreed to be acquired by Japan's Kyowa Kirin at a rich premium.
Kyowa Kirin said it would pay an initial $387.4 million, or $16 per ADS, in cash for Orchard, nearly double Wednesday's closing price of $8.14 for the London-based company.
Contingent value rights tied to U.S. approval of Orchard's OTL-200 for the treatment of metachromatic leukodystrophy could add another $1 per ADS, bringing the total value of the deal to $477.6 million, or $17 an ADS.
The transaction is slated to close in the first quarter of 2024.
Orchard ADSs were recently up 95% to $15.88 in premarket trading.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
October 05, 2023 06:14 ET (10:14 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.-
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