#USA #San Diego #Regulus Therapeutics #farabursen #Novartis AG

Regulus Therapeutics Enters Acquisition Agreement with Novartis

In a significant development for the biopharmaceutical industry, Regulus Therapeutics Inc. (Nasdaq: RGLS), which specializes in innovative medicines targeting microRNAs, has announced its agreement to be acquired by Novartis AG. This deal, valued at up to $1.7 billion, signifies a pivotal moment for Regulus as it seeks to bring its promising medication, farabursen, to market for patients suffering from Autosomal Dominant Polycystic Kidney Disease (ADPKD).

Acquisition Details

The transaction involves Novartis purchasing Regulus shares at $7.00 per share in cash, marking a 274 percent premium over Regulus' average stock price over the preceding 60 days and an 108 percent premium on the closing price from April 29, 2025. Furthermore, shareholders could receive an additional $7.00 per share via a contingent value right, contingent on the successful regulatory approval of farabursen, elevating the total potential transaction value.

The agreement has already received unanimous backing from the Boards of Directors of both companies, showcasing a strong sense of optimism about the merger.

The Strategic Rationale

Jay Hagan, CEO of Regulus, expressed enthusiasm about the merger, stating that the partnership would significantly enhance the potential for farabursen to reach patients who currently lack adequate treatment options. Hagan acknowledged the tireless efforts of Regulus' team and its supporters in advancing this innovative therapy to this pivotal stage.

On the other end, Shreeram Aradhye, Novartis' President of Development and Chief Medical Officer, highlighted the urgency of addressing the treatment gap in ADPKD, the most prevalent genetic cause of renal failure worldwide. He emphasized that farabursen could represent a first-in-class medicine with potentially enhanced efficacy and safety profiles compared to existing treatments.

Next Steps

Completion of this acquisition is anticipated by the second half of 2025, pending customary regulatory approvals and the tender of shareholder shares representing at least a majority of Regulus' outstanding shares. During this interim, Regulus will continue to function as an independent entity, allowing for uninterrupted advancement of its research and development initiatives.

Evercore has been enlisted as the exclusive financial advisor to Regulus, with Latham & Watkins LLP serving as legal counsel to facilitate the transaction.

As the biopharmaceutical landscape continues to evolve, the merger reinforces the importance of strategic collaborations aimed at leveraging developmental capabilities to meet patient needs. For Regulus, this marks not just a financial milestone but also an opportunity to enhance its contributions to healthcare through partnerships that potentially expedite the delivery of groundbreaking treatments.

Conclusion

The move to merge with Novartis signifies a major step for Regulus Therapeutics in its mission to innovate within the biopharmaceutical sector. As discussions and operations proceed, all eyes will be on the subsequent advancements related to farabursen and the potential it holds in changing the lives of ADPKD patients worldwide. Investors and stakeholders are advised to remain alert, as further developments surrounding the acquisition will follow in due course, including any regulatory insights and tender offer details.