UCB to Buy Epilepsy-Focused Zogenix In $1.9B Deal: See The Highlights

Belgian-based UCB SA UCBJF has agreed to buy Zogenix Inc ZGNX, a U.S. maker of drugs to treat seizures and rare diseases, for $1.9 billion, expanding its portfolio to treat epilepsy.

• Investors will get $26 in cash for every Zogenix share, plus a potential $2 per share payment if Zogenix's Fintepla drug gets regulatory approval for Lennox-Gastaut syndrome by the end of 2023. 
• The initial payment is 66% higher than Tuesday's closing price of $15.64.
• Lennox-Gastaut syndrome is an orphan disease that causes seizures. 
• Related: Zogenix's Fintepla Shows Long-Term Seizure Frequency Reductions In Childhood Epilepsy.
• Fintepla has already received regulatory approval in the U.S. and European Union for seizures caused by Dravet syndrome, a rare form of epilepsy.
• UCB said it would finance the deal with cash and a new term loan. 
• In addition to contributing to UCB's revenue growth after closing, the Zogenix deal is expected to be accretive to UCB's earnings from 2023 onwards.
• Lazard and Barclays are UCB's financial advisors, while Bank of America Securities and SVB Leerink advised Zogenix.
• Price Action: ZGNX shares surged 59.9% at $25.00 during the premarket session on the last check Wednesday.