Benzinga | May 5, 2021 08:00AM EDT

Chiasma Stock Shoots Up On Being Acquired By Amryt Pharma In All Stock Deal

* Amryt Pharma (NASDAQ: AMYT) has agreed to acquire Chiasma Inc (NASDAQ: CHMA) in an all-stock combination. Each Chiasma shares will be exchanged for 0.396 Amryt American Depositary Shares, each representing five Amryt ordinary shares.

* The transaction is expected to accelerate and diversify Amryt's growing revenues, and Amryt expects to deliver estimated annual cost synergies of approximately $50M.

* Dr. Joe Wiley, Chief Executive Officer of Amryt, said, "this deal further solidifies our position as a global leader in treating rare and orphan conditions."

* The combined business will have three approved commercial products, and the combined portfolio of products offers a pathway to a potential $1 billion of peak revenues.

* Lead development candidate, Oleogel-S10, is currently progressing through the regulatory process in the US and EU and, if approved, will bring a portfolio of commercial products to four.

* Management will host a webcast and conference call today at 8:30 A.M. ET.

* Price Action: AMYT shares fell 0.31% at $12.80, CHMA shares are up 37% to $3.88 in the premarket trading session on the last check Wednesday.