Gene Therapy Player Amicus Therapeutics Terminates SPAC Merger, Shares Fall
$ARYD
$FOLD
Biotechnology: Biological Products (No Diagnostic Substances)
Health Care
Biotechnology: Pharmaceutical Preparations
Health Care
- Amicus Therapeutics Inc (NASDAQ:FOLD) has terminated its plans to spin off its gene therapy assets, citing 'existing market conditions.'
- With "market conditions" sinking the planned merger with ARYA Sciences Acquisition Corp IV (NASDAQ:ARYD), Amicus plans to prioritize its gene therapy pipeline as part of a push to generate $400 million in net savings through 2026.
- By merging its gene therapy unit with Perceptive Advisors' ARYA Sciences Acquisition Corp IV, Amicus planned to reduce its outgoings and step up its push for profitability.
- The deal would have given Amicus a chance to profit from the success of the spinout via a 36% stake in the Company but free it from the cost of developing a gene therapy pipeline.
- Neither Amicus nor the SPAC will pay a termination fee as the decision was mutual.
- The termination of the SPAC merger affects the future of Amicus CEO John Crowley, who was set to swap his current position for the chance to lead the spinout.
- With the merger collapsing, Crowley plans to step aside as CEO in August, vacate the position for Bradley Campbell as previously planned, and start a two-year stint as executive chairman of Amicus.
- Earnings: Amicus' FY21 sales increased 17% Y/Y to $305.5 million.
- Cash, cash equivalents, and marketable securities totaled $482.5 million.
- The Company reported an EPS loss of $(0.92) compared to $(1.07) a year ago.
- Guidance: For FY22, the Company anticipates total Galafold revenue of at least $350 million to $365 million, up 15% - 20% Y/Y.
- Price Action: FOLD shares are down 2.06% at $8.08 during the market session on the last check Thursday.