Orchard Therapeutics plc (ORTX) is experiencing a remarkable surge in its market performance today, exhibiting a substantial gain of 97.77% and reaching a trading price of $15.98 at the latest trades.
Additionally, the trading activity for Orchard Therapeutics stock has witnessed an atypical surge in volume, with over 6 million shares changing hands within the initial hour of the trading session. This notable surge contrasts sharply with the typical trading volume of 47.58K shares.
The upswing in Orchard Therapeutics (ORTX) stock value coincides with the unveiling of an acquisition proposal. Kyowa Kirin, a leading Japanese pharmaceutical company, is set to acquire ORTX in a definitive agreement worth approximately $477.6 million.
This acquisition aligns with Kyowa Kirin’s 2030 Vision, emphasizing innovative medical solutions and its commitment to life-changing medicines, particularly in rare diseases.
Orchard Therapeutics’ gene therapy approach using genetically modified hematopoietic stem cells is at the forefront of genetic medicine, complementing Kyowa Kirin’s expertise. This strategic move will accelerate the development of ORTX’s MPS programs and other research initiatives.
The combination of Orchard’s technology and Kyowa Kirin’s resources positions them to advance biopharmaceutical candidates across various therapeutic areas, including oncology and autoimmune diseases, with the potential to revolutionize medical care.
In accordance with the established agreement, Kyowa Kirin is poised to orchestrate the acquisition of Orchard Therapeutics’ American Depositary Shares (ADSs) at a notable price of $16.00 per ADS in cash, amounting to approximately $387.4 million or ¥57.3 billion in value.
This proposition represents a substantial premium of 144% over ORTX’s 30-day volume-weighted average ADS price leading up to October 4.
As part of this transaction, Orchard Therapeutics (ORTX) shareholders will receive a non-transferable Contingent Value Right (CVR), entitling them to a cash payment of $1.00 per ADS, contingent on the approval of OTL-200 for Metachromatic Leukodystrophy (MLD) treatment in the United States, as explicitly outlined in the CVR Agreement.
