Novartis To Acquire Regulus

(RTTNews) - Regulus Therapeutics (RGLS) has entered into an agreement and plan of merger with Novartis AG and an indirectly wholly owned subsidiary of Novartis, pursuant to which Novartis will acquire Regulus for an initial payment of $7.00 per share in cash at closing, or $0.8 billion. Also, Regulus shareholders will receive a contingent value right providing for payment of $7.00 per share, contingent upon the achievement of a milestone with respect to regulatory approval of Regulus' lead product candidate, farabursen. Total consideration including the CVR, if the milestone is achieved, would be approximately $1.7 billion.

Upon the successful completion of the tender offer, a subsidiary of Novartis will be merged with and into Regulus and any remaining shares of common stock of Regulus will be cancelled and converted into the right to receive the same merger consideration per share payable in the tender offer.

Shares of Regulus are up 134% in pre-market trade on Wednesday.

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