On Tuesday, Jefferies adjusted its stance on Calliditas Therapeutics (NASDAQ:CALT), downgrading the stock from Buy to Hold and lowering the price target to $39.00 from the previous $58.00. The revision comes in light of the news that Asahi Kasei (JPX:3407-T) is set to acquire Calliditas for approximately $39 per American Depository Share (ADS), which is marginally above the current trading price of $38. The deal is valued at around $1.1 billion.
The acquisition by Asahi Kasei, a Japanese conglomerate, has been given the green light by the boards of directors of both companies and is anticipated to be finalized by September. Calliditas is expected to bolster Asahi's renal portfolio, which already includes a transplant drug, dialysis, and apheresis services.
The valuation of the deal is deemed appropriate by the investment firm, considering the sizable market opportunity for IgA Nephropathy (IgAN), Calliditas's lead in the U.S. market, the enhanced intellectual property protection for its drug Tarpeyo, and the positive market uptake observed thus far. Tarpeyo's Orphan Drug Designation (ODD) has been extended to 2030, with the Market Exclusivity (MOU) patent lasting until 2043.
Calliditas Therapeutics specializes in treatments for orphan diseases, with a focus on renal and hepatic conditions. The company's lead product, Tarpeyo, has been developed to treat IgAN, a chronic kidney disease that can lead to end-stage renal disease. The acquisition by Asahi Kasei represents a strategic move to strengthen its position in the renal disease treatment market.
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