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The $5 per share contingent value right in Astrazeneca’s (NASDAQ:AZN) planned $1.1 billion purchase of Icosavax (NASDAQ:ICVX) is based on FDA approval of RSV vaccine candidate IVX-A12 and some sales statistics.
The $4 per share CVR is based on the FDA approving IVX-A12, any vaccine incorporating IVX-A12 or any vaccine covered by the company’s patent rights before the sixth anniversary of the effective time of the merger, according to a filing late Tuesday.
The $1 per share CVR is based on whether a selling entity achieves $200 million in net sales of all products in the European Union, the United Kingdom and Canada prior to the seventh anniversary of the effective date of the merger.
AstraZeneca previously agreed to acquire US vaccine developer Icosavax (ICVX) in a deal worth up to $1.1 billion. The deal values Icosavax at $15/share in cash at closing, plus a non-tradable CVR or up to $5/share in cash if certain milestones are met.
Shares of Icosavax (ICVX) jumped 50% on Tuesday following the deal announcement.
