Egetis Therapeutics: Acquisition discussions terminated - Redeye

Redeye has a neutral take on the announcement that the discussions of a potential acquisition of Egetis have been terminated, as the offer and terms “while providing a premium to the current share price, considerably undervalued the long-term prospects of the Company”. We argue that Egetis has been significantly undervalued for some time now and would have wanted to see a significant premium to be positive to an acquisition, further supported by Egetis short remaining time to market with Emcitate and also given that the company and previous owners have the right to a priority review voucher worth in total USD100m, that can be sold, after the US approval. In the same release, we learn that the timeline for the submission of the marketing authorization application (MAA) in the EU for Emcitate has been pushed from Q2 to early autumn (ie likely September of October). It has no immediate impact on valuation, although it could somewhat impact the stock sentiment in the near term as we wait for further progress.