Aegerion Pharmaceuticals, Inc. (NASDAQ:AEGR) and QLT, Inc. (TSE:QLT) announced on Wednesday that they have entered into a merger agreement under which Aegerion Pharmaceuticals will become a part of the latter’s indirect subsidiary. Upon the fulfillment of the deal, each outstanding share of Aegerion Pharmaceuticals will be converted to 1.0256 shares of QLT. Moreover, QLT will change the company’s name into Novelion Therapeutics, Inc., the common shares of which will be traded on both the Toronto Stock Exchange (TSE) and NASDAQ Global Select Market, following the completion of the transaction. The deal is expected to be fulfilled as early as the third quarter of the year.
Corporate Structure
Novelion Therapeutics is expected to have its principal headquarters (HQ) and main business operations unit in Vancouver, British Columbia (BC), Canada and Cambridge, Massachusetts, USA respectively.
Meanwhile, its Board of Directors will have 10 members, four of whom are Aegerion Pharmaceuticals designees and two shareholder representatives— one from Broadfin Capital and another from Sarissa Capital.
Key Details of the Merger
The aforementioned exchange ratio is still subject to some amendments if and when the disclosed securities class action litigation of Aegerion Pharmaceuticals and related Department of Justice (DOJ) and Securities and Exchange Commission (SEC) investigations are resolved prior the closing of negotiations.
Moreover, immediately after the transaction has been closed, existing QLT and Aegerion Pharmaceuticals shareholders will own 67% and 33% of Novelion Therapeutics common stock respectively.
Long-Term Prospects of the Merger
Both companies expect the deal to establish a stronger pharmaceutical company with a wide range of portfolio.
Mary Szela, Aegerion Pharmaceuticals CEO, will serve as the CEO of Novelion Therapeutics following the merger completion. Szela believes that QLT’s resources and Aegerion Pharmaceuticals’ prowess in commercialization will lead to significant discoveries and milestones in the industry. Hence, benefitting both companies in the long run. Szela added that this merger will open several new doors of opportunities for more meaningful clinical advancements.
Similarly, Dr. Geoffrey Cox, Ph.D., QLT Interim CEO, noted that Aegerion Pharmaceuticals and QLT are ideally complementary.
