Synergy Pharmaceuticals Inc.
) stockholders recently approved Synergy Pharma's merger with
Callisto Pharmaceuticals Inc. The deal was initially announced in
Jul 2012 and later amended in Oct 2012. The merger is expected to
be completed soon.
As per the initial terms of the merger agreement both the
companies decided that every outstanding share of common stock of
Callisto will be swapped for 0.17 shares of common stock of
Synergy Pharma. Moreover, the 22.3 million shares of Synergy
Pharma held by Callisto will be canceled.
The initial terms of the merger further stated that the shares
of Synergy Pharma will be issued to Callisto under certain lockup
commencing from the date of merger. The lockup will end either
eighteen months from the date of merger or in case of a change in
control (as defined in the merger agreement), whichever is
It was also decided that Callisto stockholders will receive
shares of common stock of Synergy Pharma in a tax-free exchange.
Moreover, stockholders of Synergy Pharma will own approximately
61.7% of the combined company and the balance will be owned by
the stockholders of Callisto.
However, Synergy Pharma and Callisto revised their merger
agreement later in Oct 2012. Both the companies agreed to change
the exchange ratio to almost 0.18 from the previous ratio, which
means every outstanding share of common stock of Callisto will be
exchanged for almost 0.18 shares of common stock of Synergy
The previous lockup provision was also revised and the lockup
is expected to begin on the day of the merger and will end either
twenty-four months from the date of merger or if there is a
change in control (as defined in the merger agreement), whichever
Synergy Pharma currently carries a Zacks Rank #3 (Hold).
Meanwhile, other pharma stocks such as
AcelRx Pharmaceuticals, Inc.
Anacor Pharmaceuticals Inc.
) carry a Zacks Rank #2 (Buy).
ACELRX PHARMACT (ACRX): Free Stock Analysis
ANACOR PHARMACT (ANAC): Free Stock Analysis
SYNERGY PHARMAC (SGYP): Free Stock Analysis
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