(Newswire.net — October 13, 2019) — In case you don’t know, Ra Pharm is a biopharma. They work in the research of many harmful diseases. They especially work on those diseases which are caused by excessive activation of the complement system which is a critical component of your immune system.
Recently UCB has decided to acquire this RA PHARMACEUTICALS for $2.1 Billion. In this agreement they also said that they will increase their research circle especially in the field of neurology and immunology. Both of these companies have joined hands together and we can expect that they will double their stock after this agreement.
COMMENTS BY EXECUTIVES OF BOTH COMPANIES:
The executives of both companies are quite excited and they believe that this deal will be beneficial for both companies. CEO of UCB has said in an interview that RA PHARMA is a great medical company. He also added that UCB and RA PHARMA will open new ways in the research of diseases.
CASH OF EACH SHARE:
After UCB has bought RA Pharma, they will pay $48 in each share. The payment will be done in cash. The CEO of RA Pharma has said that this is more than their closing price. The complete purchase will be done by cash through bank loans. The whole payment will be done in a year or two. UCB’s board of directors has said that this will not affect the company financially.
TREATMENTS IN DIFFERENT DISEASES:
This is obvious that when two drug selling companies join hands together, their production stock will increase. Both companies believe that soon they will become the leading company in treating the ailment. This disease has already affected 200,000 US citizens. When this deal is done, they will be able to provide more drugs to more affected people.
THE LOGIC BEHIND THIS DEAL:
The leading product of RA Pharma is Zilucoplan. This product is under evaluation for find the indications of myasthenia gravis, immune mediated necrotizing myopathy and renal disorder.
UCB believes that after the agreement they will be able to double their research as well as their stocks can grow too. UCB works mostly upon diseases related to neurology and immunology. RA Pharma can help UCB to increase their pace in the research.
Also the reason behind this deal is that UCB wants to strengthen their hold in the US. When their deal is done, UCB will be able to sell their products in the US too.
CONCLUSION:
No doubt this deal is good for both companies. Not just for the companies, but affected people will now be able to get their related drug easily because when these two companies join hands together, their drug stock will increase. UCB believes that their ratio of core profit will increase up to 31% by the end of 2021 and in the beginning of 2022. The deal is expected to close by the first quarter of next year. Only time will tell whether this deal is good or not.