Health Care Company Harmony Biosciences Announces Acquisition of Zynerba Pharmaceuticals

Harmony Biosciences HRMY has announced an acquisition of Zynerba Pharmaceuticals ZYNE that is expected to be completed in Q4 of 2023.

Under the terms of the agreement, Harmony Biosciences has agreed to give Zynerba Pharmaceuticals $200.00 million in cash in exchange for ZYNE stock.

About The Companies Involved

Harmony Biosciences Holdings Inc is a commercial-stage pharmaceutical company focused on developing and commercializing therapies for patients living with rare neurological diseases who have unmet medical needs. The company's product WAKIX (pitolisant), is a molecule with a novel mechanism of action specifically designed to increase histamine signaling in the brain by binding to H3 receptors and used for the treatment of cataplexy in adult patients with narcolepsy.

Zynerba Pharmaceuticals Inc is a pharmaceutical company that is focused on developing and commercializing proprietary next-generation synthetic cannabinoid therapeutics formulated for transdermal delivery. Its product pipeline consists of Zygel which is a pharmaceutically-produced CBD, a non-euphoric cannabinoid, formulated as a patent-protected permeation-enhanced gel for transdermal delivery through the skin and into the circulatory system.

How An Acquisition Works

An acquisition is when one company, called the acquiring company, buys most or all of another company's, or target company's, shares to gain ownership. Buying more than 50% of a company's stock allows the the acquirer to make decisions without the approval of the company's shareholders.

An acquisition can potentially lead to a merger with the parent company, which makes it similar to a merger. This is why the two terms are commonly grouped together as mergers and acquisitions (M&A). However, in a merger, the leadership & operations of both companies usually change dramatically, while during an acquisition this is less likely to happen.

Make sure to follow our mergers & acquisitions calendar to stay-up-to-date on the most recent M&A deals.

This article was generated by Benzinga's automated content engine and reviewed by an editor.