NuPathe has ended its agreement to be acquired by Endo Health Solutions in favor of a higher bid from Israel’s Teva Pharmaceutical Industries.
Malvern, Pa.-based NuPathe’s shares plunged in premarket trading Tuesday after it announced the switch and said it would also pay Endo a $5 million termination fee.
Teva plans to buy the migraine treatment maker for $3.65 per share in cash plus additional payments of up to $3.15 per share if NuPathe’s treatment, Zecuity, reaches certain sales milestones.
Endo, which also is based in Malvern, had announced last month an offer of $2.85 per share with another $3.15 per share based on Zecuity milestones. That deal totaled at least $105 million.
Teva then stepped in earlier this month with a bid worth at least $114 million.
Endo CEO Rajiv De Silva said Tuesday in a statement that the Teva offer was positive news for NuPathe stockholders, and his company accepted the termination fee and will start withdrawing its offer.
Zecuity is a single-use, battery-powered patch that delivers the widely prescribed migraine medication sumatriptan through the skin. The FDA-approved treatment aims to provide relief for migraine headache pain and migraine-related nausea.
The price of NuPathe shares sank 33 cents, or 7.5 percent, to $4.05 in premarket trading Tuesday. Meanwhile, U.S.-traded shares of Teva climbed 58 cents to $44.85.