Shares of healthcare company Juniper Pharmaceuticals, Inc. JNP jumped by about 31.6% after the company entered into a definitive agreement with Catalent, Inc. CTLT, as per which Catalent will acquire all of the outstanding shares of Juniper at a price of $11.50 per share in cash. Catalent is the leading global provider of advanced delivery technologies and development solutions for drugs, biologics and consumer health products.

Year to date, shares of Juniper increased 136.1% compared with the industry’s growth of 2.7%.

The deal represents total equity value of approximately $139.6 million on a fully-diluted basis. This is at a 59.7% premium to Juniper’s share price as of the last trading day before the deal announcement. Juniper has inked the deal to explore strategic alternatives in order to maximize shareholder value.

As per Catalent, the company would continue to support Juniper’s Crinone franchise, a progesterone gel, which is its single largest revenue source, marketed by Merck KGaA MKGAF outside of the United States. Further, Juniper’s expertise in pharmaceutical services will also support Catalent’s strategic goal to be the comprehensive partner of choice for pharmaceutical innovators.

Terms of the Agreement

Per the agreement, Catalent will promptly commence a tender offer to acquire all of the outstanding shares of Juniper’s common stock at a price of $11.50 per share. Further, the transaction is subject to other customary closing conditions.

Once the merger is complete, Catalent will acquire all remaining shares of Juniper at the same price of $11.50 per share, through a second-step merger. The closing of the transaction is expected to take place in the third quarter of 2018.


Zacks Rank & Stock to Consider

Juniper has a Zacks Rank #3 (Hold).

A better-ranked stock from the same space is ANI Pharmaceuticals, Inc. ANIP, which carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

ANI Pharmaceuticals’earnings per share estimates have moved up from $5.54 to $5.70 for 2018 and from $5.72 to $6.15 for 2019 over the past 60 days. The company delivered a positive earnings surprise in three of the trailing four quarters with an average beat of 8.69%. The stock has rallied 4.6% so far this year.

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