BioTech

Aviragen Therapeutics Inc (NASDAQ:AVIR) Shares Drop on Merger Announcment

Aviragen Therapeutics Inc (NASDAQ:AVIR)

Aviragen Therapeutics Inc (NASDAQ:AVIR)

Shares of Aviragen Therapeutics Inc (NASDAQ:AVIR) are having their most volatile day in months after the biotechnology company announced that they were merging with Vaxart, Inc., a privately-held, clinical-stage company focused on developing oral recombinant vaccines. The merger will result in a combined company, Vaxart, Inc., focused on developing orally-delivered therapeutics and prophylactics to address a variety of viral infections.

Aviragen Therapeutics Inc (NASDAQ:AVIR)

Wouter Latour, M.D., Chief Executive Officer of Vaxart stated “This transaction gives us the opportunity to build on the positive Phase 2 challenge study results we announced recently for our influenza oral tablet vaccine, as well as the excellent results we obtained in the safety and immunogenicity studies with our norovirus vaccine.  Additionally, it will provide us access to Aviragen’s antiviral assets, including their BTA074 Phase 2 program for the treatment of condyloma caused by HPV, which is on track to complete enrollment this quarter and to report top-line safety and efficacy data in the second quarter of 2018.”

Deal Details

The exchange ratio was determined by assigning $60 million in value to Aviragen Therapeutics Inc (NASDAQ:AVIR) for its financial and clinical assets and $90 million in value for Vaxart’s assets. On a pro forma basis, after giving effect to the number of shares of Aviragen common stock issued in the merger, Vaxart’s securityholders will own approximately 60% of the combined company and Aviragen Therapeutics Inc (NASDAQ:AVIR) shareholders will own approximately 40% of the combined company.

AVIR Stock Review

AVIR shares ended Friday at $0.83 then gapped up this morning to open at $0.96 on the merger news. The shares went on to hit an inter-day high of $1.08 before sellers came in a pushed the price down to a low of $0.67. Currently shares are trading around the $0.70 handle.

AVIR shares have done well since they hit a 52-week low early this past summer at $0.43. For the month they are up over 27% and up for the quarter by a whopping 50%.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

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About the author: Monica has an undergraduate degree in Accounting and an MBA she earned – with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.

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Monica has an undergraduate degree in Accounting and an MBA she earned - with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.

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